Michael Reddell: former Reserve Bank economist on Adrian Orr's surprise resignation as Governor

There's surprise among economists and industry experts after Reserve Bank Governor Adrian Orr abruptly resigned today.  

Orr was almost halfway through his second five-year term.

Former Reserve Bank economist Michael Reddell says no one's received an adequate explanation as to why Orr chose to depart today - and it's not good enough.

"Maybe he really is just exhausted - but still, you don't just walk out on the same day, on the eve of a really big conference being hosted tomorrow."

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Rail for Adrian Or has gone from the Reserve Bank.
Last day will be March thirty first. From April first,
the Finance Minister's going to appoint somebody on a temporary
basis up to six months.

Speaker 2 (00:09):
Now.

Speaker 1 (00:09):
The Reserve Bank Board chair Neil Quigley has just given
a media stand up. Have a listen.

Speaker 3 (00:15):
I have confidence in Adrian. Yes, he and I have
been through a lot in my time as Ford Chair
and his time as governor.

Speaker 1 (00:26):
Three years left on his term. Question is why now?
Michael Riddell's former Reserve Bank economist Michael good evening to you,
Good Evening. What do you think he is? Why now?
Do you think.

Speaker 2 (00:37):
It's really extraordinary? I don't think anyone has a compelling explanation.
I mean, if it was just that he studied, done
the job and he was getting tired, you give three
months notice and you say, look, I'll go after the
nitary policy statement. Instead, he's out today, We've got an
acting governor filling in and they say a proper temporary
one from the first of April. There have been suggestions

(00:57):
that maybe there's some sort of behavioral issues, although those
comments from real quickly cast out on that the Finance
minister last week was just in the budget was going
to be cut. But I mean every public sector CEO
Wilmington's had to live with budget cuts. So you know,
we just haven't got adequate explanations and frankly it's not
good enough from either Quickly or the minister or Adrian himself,

(01:18):
powerful public figure.

Speaker 1 (01:19):
Do you think he's got a new job?

Speaker 2 (01:21):
No, I don't. I mean, I think if that with
the case, they would have indicated it quite clearly out
twenty five years Don Brash resigned to join politics. He
was opening upfront about that. He was out within the hour.
Everyone understood the reasons why. It's got to be something
more than that. Maybe he is really just exhausted, but
you still don't just walk out on the same day,
on the eve of a really big conference they're hosting tomorrow.

(01:42):
They've got Ben Bananke speaking at it. The Governor may
not even be there.

Speaker 1 (01:47):
Michael, thank you for that. Michael Ridell, former Reserve Bank economists.
Time is thirteen minutes after five.

Speaker 2 (01:51):
Ryan read.

Speaker 1 (01:52):
Fascinating, isn't it? Nine two nine two? The number of
text everybody's got a theory. You can imagine when it
comes to Adrian or really interesting stuff coming out today
from Richard Preeble why he's resigned from the White Tonguy Tribunal,
and he says it's to do with the manifesto that
he calls socialist. This is the directive on how they
know their doctrine, on how they run themselves. He says,

(02:12):
it's a socialist manifesto. He's on the show after five
point thirty seven. Ask him about that. And you know
those astronauts that went to space, the Butch Wilma and
Sonny Williams, and they were meant to be there for
a week and they have now been there for almost
a year because something broke down, there was some kind
of issue. We turns out they're coming home. It's a Houston,

(02:32):
We're coming home moment for them, stuck up there for
far too long since June last year, it was, And
they're coming home. Next week their replacements will arrive, and
then a month after that they're allowed to come home.
So they'll be very happy with that, as you can imagine.
And replacing them, interestingly, is that one Russian and one
American astronaut who will be up there together. I'm sure
getting along like a house on fire.

Speaker 3 (02:54):
For more from Heather Duplessy Allen Drive. Listen live to
News Talk sai'd Be from four pm week or follow
the podcast on iHeartRadio