Reserve Bank executive to have their power reduced

The recommendations of an external review of the Bank have been backed by politicians across the political divide.

Bank Governor Don Brash, who gave a controversial speech to the Knowledge Wave conference last week, will no longer chair the bank's board under the proposed changes.

That job will fall to a non-executive director.

Dr Brash will remain on the board but his two deputy governors will be removed.

He will remain solely responsible for monetary policy but will be expected to listen to a wider range of views.