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 Thursday, the Reserve Bank said.
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.
Professor Quigley was my lecturer in monetary economics. He was a great lecturer and made a lot of sense then. Am pleased to see him as Reserve Bank Chair.
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.
He would be a strong contender.