Brash resigns to stand for National Party

9.45am

Reserve Bank Governor Don Brash said today he had resigned with immediate effect and will stand for the National Party at this year's general election.

"I have been invited to seek nomination for the National Party as a candidate in the upcoming general election, and I have decided to accept that invitation.

"I wish to stress that this decision is not motivated by any tension with the minister of finance (Michael Cullen) or the Government."

Dr Brash, who has been Governor since September 1988, previously stood unsuccessfully for the National Party in a byelection in East Coast Bays in 1980 and in the same electorate in the 1981 general election.

His announcement caused a sharp fall in the New Zealand dollar. It had been trading at a 14 month high of US45c but dropped around quarter of a cent to US44.75c.

Dr Cullen said Deputy Governor Rod Carr would take over from Dr Brash as acting governor.

"Reserve Bank Governor Don Brash has been a leading central banker, recognised around the world for his commitment to price stability," Dr Cullen said in a statement.

Dr Brash advised Dr Cullen of his decision this morning before making it public.

"Assuming Dr Brash is sufficiently highly placed on the National list to make the cut, I look forward to facing him across the House," he said.

- NZPA