(Bloomberg) -- Reserve Bank of New Zealand Governor Adrian Orr has unexpectedly resigned without giving a reason for his sudden departure.

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Orr, who still has three years to serve in his second five-year term, made the announcement in a short statement Wednesday in Wellington. Deputy Governor Christian Hawkesby will be Acting Governor until March 31, when Orr will officially leave the bank, an RBNZ spokesman said.

New Zealand’s dollar briefly dipped on the announcement, before paring losses to be little changed. It bought 56.52 US cents at 5:35 p.m. in Wellington.

“I think any market impact will be limited,” said Stuart Ritson, a fixed income strategist at Bank of New Zealand. “RBNZ uses a committee structure for monetary policy and Acting Governor Hawkesby will provide continuity in leadership.”

Orr, 62, has faced criticism for his stewardship of monetary policy after he raised interest rates aggressively in the wake of the pandemic to tame inflation, pushing the economy into recession. The government has also told the RBNZ to reduce spending as they negotiate a new five-year funding agreement.

Orr said it had been a privilege to lead the institution.

“I leave the role with consumer price inflation at target, and an economy in a cyclical recovery following the long period of COVID-related disruption,” he said. “The financial system remains sound.”

He noted, however, that there is “much work left to do on the major multi-year strategies” the RBNZ is following and said “ongoing focus and funding will be critical to these projects’ success.”

Finance Minister Nicola Willis said that, on a recommendation from the RBNZ Board, she will appoint a temporary governor from April 1 for a period of up to six months.

She wouldn’t comment on why Orr was leaving, telling reporters that was “for him to characterize.”

Personal Decision

RBNZ Board Chair Neil Quigley told reporters Orr had made a personal decision, adding that there were no conduct issues and he retained the confidence of the board.

“He’s achieved a great deal that he set out to do when he took the job,” he said. “Adrian feels that he’s done the job and he has inflation back within the target range and feels positive about that.”

“A change of leadership, unexpected or otherwise, doesn’t alter the challenge facing the RBNZ,” said James McIntyre, an economist with Bloomberg Economics in Sydney. “After driving the economy into recession in order to crush inflation the central bank now needs to secure a recovery.”