University of Waikato vice-chancellor Neil Quigley has been elected chairman of the Reserve Bank of New Zealand.

University of Waikato vice-chancellor Professor Neil Quigley has been elected as chairman of the Reserve Bank, as Dr Rod Carr reveals he is quitting the board.

In a statement the Reserve Bank said Carr, the vice-chancellor at the University of Canterbury, had advised the board "some months ago" that he would not be seeking a further term on the board when the current term ends in July 2017.

"In light of that decision he had decided to step down as chair," the Reserve Bank said.

Quigley became chairman on Friday, the Reserve Bank said.

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Finance Minister Bill English said Quigley "has had a distinguished academic and consulting career".

Previously a professor at Victoria University of Wellington and the University of Western Ontario, Quigley is also a director of the New Zealand Qualifications Authority. He was first appointed to the board of the Reserve Bank in 2010.

Carr was previously deputy governor of the Reserve Bank, and served as acting governor for a time in 2002, when Don Brash quit the role to join the National Party as an MP.

He was later replaced by Alan Bollard.

One leading market participant speculated earlier this year that if Carr stood down from the Reserve Bank board, it could be a sign that he wanted to be considered as a contender to replace Graeme Wheeler as governor in 2017.

In July, Carr refused to comment on whether he wanted to become governor.

English thanked Carr for his "service and leadership" to the board and the bank.

"Dr Carr has successfully led the board through a challenging period during which the bank's ambit has widened to include the macroprudential framework and active supervision of the banking and insurance industries."

Wheeler praised his departing chair.

"Rod has provided over a decade of invaluable service to the Bank, spanning key management and governance roles. He has been an outstanding chairman and the bank has benefited greatly from his intellectual rigour and sound advice and judgment."

Kerrin Vautier, a consulting research economist, has been appointed as deputy chair.