ADRIAN ORR our NEW RBNZ GOVERNOR

[GTM 3442]

Interesting link, thanks for that.

Mister Orr sure inherited quite a tricky situation, didn't he!

[Aaron]

Interesting link, thanks for that.

Mister Orr sure inherited quite a tricky situation, didn't he!

He has only carried on what previous governors have done but done a lot more.

https://www.nzherald.co.nz/business/...PXNBXKV7QS7W4/

Adrian says that an $8billion dollar loss is just "noise"

Former RBNZ deputy governor Grant Spencer says the cost is real and shouldn’t be disregarded. Who to believe?? Adrian also said things like the central bank only plays a "bit" part in the housing market.

The reason for the loss is that Adrian desperately needs to reduce the RBNZ balance sheet so he can do it all over again. The central bank guarantee to support asset prices remains in place.

When previously asked about the issue, Orr and his colleagues have explained the cost of the LSAP programme to the Crown should be considered alongside its benefits.

For example, the downward pressure it put on interest rates lowered the Crown’s borrowing costs. Lower interest rates also helped stimulate the economy, which increased the Crown’s tax take. (As well as increasing asset and house prices)

As for the smooth functioning of the bond market at a time New Zealand needed to issue a lot of debt – it’s hard to put a price on that. $8billion seems like a high price to me.

What if we did not have a crazy RBNZ governor and the NZ govt was forced to sell debt at higher yields. Would we have had the second (pointless) round of lockdowns in August 2021 or would the govt have been forced to seriously consider the costs and benefits of its massive over reaction when faced with higher interest rates.

Are we (NZ taxpayer) not effectively paying a higher interest rate anyway when these bonds are sold at a loss? Money for nothing, thanks Adrian.

[winner69]

He has only carried on what previous governors have done but done a lot more.

https://www.nzherald.co.nz/business/...PXNBXKV7QS7W4/

Adrian says that an $8billion dollar loss is just "noise"

Former RBNZ deputy governor Grant Spencer says the cost is real and shouldn’t be disregarded. Who to believe?? Adrian also said things like the central bank only plays a "bit" part in the housing market.

The reason for the loss is that Adrian desperately needs to reduce the RBNZ balance sheet so he can do it all over again. The central bank guarantee to support asset prices remains in place.

When previously asked about the issue, Orr and his colleagues have explained the cost of the LSAP programme to the Crown should be considered alongside its benefits.

For example, the downward pressure it put on interest rates lowered the Crown’s borrowing costs. Lower interest rates also helped stimulate the economy, which increased the Crown’s tax take. (As well as increasing asset and house prices)

As for the smooth functioning of the bond market at a time New Zealand needed to issue a lot of debt – it’s hard to put a price on that. $8billion seems like a high price to me.

What if we did not have a crazy RBNZ governor and the NZ govt was forced to sell debt at higher yields. Would we have had the second (pointless) round of lockdowns in August 2021 or would the govt have been forced to seriously consider the costs and benefits of its massive over reaction when faced with higher interest rates.

Are we (NZ taxpayer) not effectively paying a higher interest rate anyway when these bonds are sold at a loss? Money for nothing, thanks Adrian.

All that punting and making huge losses and he gets away with it and keeps his job because he's a hero in so many eyes

And he probably considers himself a hero and the greatest central banker there's ever been

But he's even worse than his predecessor Wheeler who was even worse than Bollard before him

[Aaron]

Demand for capital required for the cyclone clean up. Concerns that capital is not unlimited and interest rates could rise to reflect the demand and supply of savings.

https://www.nzherald.co.nz/business/...JRMQAK5EV2S2Y/

$3billion, Adrian could whip that up in less time than it takes to tap 3,000,000,000 onto a computer screen. Capital is unlimited, why worry about it now.

[Aaron]

Adrian helping Aussie banks to record profits while not exactly helping local NZ owned financial institutions. Not earth shattering but something negative about the RBNZ so thought I would post.

https://www.interest.co.nz/banking/1...etition-gareth

[Aaron]

Inflation targeting a thing of the past???

https://www.stuff.co.nz/business/131...l&cx_artPos=10

Economists with their usual, "other countries are doing it so we should too arguments"

“Inflation is a pain in the neck. Unemployment is an existential threat. Unemployment is definitely more painful than inflation. Yet – maybe it’s not rational – but people really hate it.”

Inflation at 5% probably not too bad for a home owning well paid bank economist. Unemployment is an existential threat. I would have thought that working and being paid in worthless dollars might be just as bad. Even worse pay rises lower than inflation slowing reducing your quality of life year after year with no hope for the future. Trickle down on steriods.

[peat]

we are working to act holistically

digging himself a big holistically

[Logen Ninefingers]

The RBNZ poured cheap money into the retail banks via a dunderheaded ‘funding for lending’ programme, then Orr wonders in public why retail banks won’t offer decent term deposit rates. There should be a ‘banking inquiry’ alright - an inquiry into the actions of the RBNZ encompassing 2020 - 2022, as it seems over this period they created a lot of the mess this country now finds itself in as regards a fiasco of a housing market & a banking sector gone rogue.

[Aaron]

Looks like Adrian continues to fail at his role at the RBNZ, inflation steady at 7.2%. If I were the teachers striking I would be making sure you are asking for enough to cover continuing high inflation for the next couple of years at least.

Adrian does not have the stones to bring it under control and home owners and asset owners prefer loose monetary policy as inflation is not that bad if asset prices are going up as well while inflation eats away at any borrowings required to buy the assets, so do govts and political parties making promises to win elections. That is why we need a strong independent reserve bank governor. With a salary of $800k a year I suspect we know who Adrian will be more concerned about rich or poor... tough decision.

https://www.newshub.co.nz/home/money...ise-again.html

Funny how narratives change to suit the times. I used to read that retiring baby boomers would cause deflation as someone a couple of years into retirement tends to spend less. Now I am reading that retiring baby boomers are leading to a shortage of labour pushing up wages and inflation. Who knows what to believe.

[Aaron]

Opinion piece so take it with a grain of salt. Richard Prebble reckons the RBNZ is the main reason Aussie banks are making so much profit and questions why the NZ taxpayer is subsidising them through the actions of the RBNZ.

https://www.nzherald.co.nz/business/...CLNKQREHXJYGA/

That would explain Labour stopping Chloe Swarbrick's investigation of the RBNZ actions in response to the pandemic and now National's banking enquiry. No accountability at the top.