Reserve Bank chief economist John McDermott will be leaving the bank next year to join the economic research institute Motu as an executive director. 

His departure comes a month after Reserve Bank governor Adrian Orr set about creating a new senior leadership team. That saw McDermott accept the role of chief economist and a department head, as opposed to the assistant governor’s role he held under the past two governors. The assistant governor and general manager of economics, financial markets and banking role is still to be appointed.

McDermott will remain the Reserve Bank’s head of economics department and chief economist until the end of February after the release of the February Monetary Policy Statement, the central bank said in a statement. 

“We wish John every success in his new role and thank him for the solid work and culture he leaves behind at the Bank,” Orr said. 

Motu said he will begin his executive directorship in early March 2019.  He has been a Motu Associate since 2002. 

At Motu he joins Arthur Grimes, who is a senior fellow. Grimes has also been RBNZ chief economist and was chair of the central bank’s board. 

Recruitment for a new RBNZ chief economist will begin in the New Year. 

McDermott joined the central bank in 2007, heading its economic function and was assistant governor by 2008.

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