ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

Just another article suggesting Adrian may not have done a good job with his path of least regrets approach.

https://www.nzherald.co.nz/business/...NAZ25VPA2S5TU/

To quote from the article.

as early as October 2020, the likes of former Reserve Bank chairman Arthur Grimes was ringing the alarm bells over house price inflation, and how very loose monetary policy was "destabilising asset prices".

Nonetheless, by November 2020, the Reserve Bank announced it would launch its second money printing programme, through which it would lend banks money cheaply to help them keep mortgage and term deposit rates low.
By this point, the Reserve Bank knew the REINZ's house price index had gone up by 6.2 per cent in the three months to September, and 11.1 per cent in the year to September.
It had already cut the Official Cash Rate (OCR) by 75 points to a record low of 0.25 per cent and printed $40b to buy bonds via its Large-Scale Asset Purchase (LSAP) programme.

By February 2021, Grimes said the Reserve Bank should start tightening monetary policy. By July 2021, he claimed the Government and Reserve Bank had engineered a "wellbeing disaster".

When quizzed about the housing market, Governor Adrian Orr has tended to argue it isn't the Reserve Bank's job to target house prices.

He also said the RBNZ only plays a "bit" part in the value of housing in NZ and he has mentioned the wealth effect he was trying to create, so the message he gives appears inconsistent or wrong.

I think the real reason he got it so wrong is that since 2008/09 central banks have gone crazy but they only seemed to inflate asset prices without affecting CPI. Adrian probably thought he could carry that on with few regrets, especially as he earns $800k a year and no doubt was comfortable with his house prices rising.

Not surprised Labour does not want an enquiry into the well being disaster they helped to create. It might start with the profits the banks are making.