ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

And I'd suggest not to assume as that experience is now 15 years out of date.

Arthur Grimes and Graeme Wheeler also criticised the RBNZ but using your logic anyone who is not currently at the RBNZ has no clue.

Admittedly economics is an arts subject rather than a science but easy money and lower interest rates have been going for 30 years so not much change over the years I would have thought.

Adrian was just a bit more weak than previous governors about maintaining price stability in the (possible) face of declining asset prices and also running out of road to kick the can with the OCR near zero he turned to printing, as noted on the RBNZ website.

As the Monetary Policy Committee's (MPC) ability to lower the OCR became constrained during the COVID-19 crisis, we expanded our monetary policy toolkit. The MPC implemented a Large-scale Asset Purchases (LSAP) programme and a Funding for Lending Programme (FLP).

But I expect there will be some further unconventional policies to boost asset prices if they fall much further. They will have learnt their lesson and future money printing will only go into the banks to boost asset prices while keeping the CPI near 3%. No more helicopter money (govt bond purchases) as this has obviously gone to consumption and CPI inflation rather than assets.

I know nothing but can confidently predict lower interest rates (possibly negative (insane)) and more money printing (sorry, expanded monetary policy toolkit) if house prices fall 20%.