Reserve Bank Governor Adrian Orr has resigned after seven years of service.
Orr says the Reserve Bank's made considerable progress in its approach to financial policy throughout his time.
Newstalk ZB senior political correspondent Barry Soper says Orr could be feeling his job is done, now the economy is recovering.
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Speaker 1 (00:09):
You're listening to a podcast from News Talk sed B.
Follow this and our wide range of podcasts now on
iHeartRadio Right Big.
Speaker 2 (00:17):
News Last Hour. Adrian noy He is stepping down as
Reserve Bank Governor at the end of the month. He
made the announcement today, four years before the end of
his second five year term. To discuss further, we're joined
by senior political correspondent Barry so big Ya Barry.
Speaker 3 (00:32):
Good afternoon, lad. It's nice to be here, Barry.
Speaker 4 (00:34):
A month's notice that seems very short and dramatic. Any
word of fees being pushed or leaving or.
Speaker 3 (00:40):
What's going that's always the question, isn't it what you pushed?
Or Well, the thing is I think he would have
been contemplating his future from the time that National won
the election. And to come to that conclusion is pretty
easy because when he was reappointed to the job by
Grant Robertson in twenty twenty two, you know, a five
(01:02):
year appointment a year after from an election, which was
really unusual because Grant Robertson knew quite forcefully from Nikola
Willison others that they didn't want Adrian or reappointed. Nevertheless,
I think it was his final finger to the National Party.
Speaker 4 (01:23):
There was a spike appointment as opposed to he thought
that Adrian Oire was the best person.
Speaker 3 (01:27):
Well, I think mistakenly Labor did think Adrian Or was
doing the right thing. I mean, Adrian Or was quite
public as more like a farmer. I always thought that
a leading banker. But he publicly said that he was
going to engineer a recession. While he most certainly did
that he used the ocr against the economy like a
firing squad, because it was all over the place, going
(01:51):
mainly in the wrong direction, going up, and sucking so
much money out of the economy that nobody had much
to spend. Needless to say, those on mortgage interest rates
the ones that suffered the most, but so did business
and the rest of it. So New Zealand into a recession.
And that's what the power of a reserve bank governor
(02:14):
is separate from the government. Statutorily they're separate. But you know,
I think there should be more inclusion from the Reserve
Bank and the beehive across the road.
Speaker 4 (02:25):
Yes, so we essentially had the hardest landing in the OECD. Right,
how much responsibility is that on the reserve.
Speaker 3 (02:35):
Feet Oh, totally. But don't forget he works to a
committee as well. So when they decide on the ocr
and what it's going to be, the committee of infinite
wisdom sits around and decides what's likely to happen in
the economy a minutes. You know, Economics, as we all know,
is a very inexact science, and so you can only
(02:56):
take a punt like the rest of us. But this
Adrena wall All was much more deliberate when it came
to the economy. He believed that he had his finger
on the pulse and hunting money was sort of out
of control. The government spend was out of control, and
that allowed them to spend the way they did. So look,
(03:19):
there's a lot resting on Adrian Or's shoulders. In a
personal sense, Adrian All was quite a nice block. I mean,
before he got these lofty positions. I remember having a
lovely dinner at the White House at Wemington, very expensive restaurant,
with another bank of mate of mine from New York,
and tasted one of the best bottles of wine I
(03:40):
remember with Adrian that night. But from then on in
he became more and more elusive. When it came to
journal's and so, having known him years ago, I really
don't know the man that I had dinner with that night.
Speaker 2 (03:55):
Do you think the writing has been on the wolf
for some time? Barry? I remember when he was on
with Mike on the Breakfast Show, I think two weeks ago.
He sat a very chip, a very happy, very jovial,
very different from the prickly persona that we've come to
know of Adrian.
Speaker 3 (04:08):
In fact, I listened to that interview and like you,
I thought, goodness, gracious me, old Adrian. He really thinks
he's on top of all this now, and indeed the
economy is starting to go in the right way. So
it maybe that Adrian thought, well, I've done the job.
You've got to remember this, the superannuation fund earning well
(04:30):
an excess of what he earned at the Reserve Banks.
Speaker 4 (04:33):
What did he end at the Reserve Bank? Its about
eight hundred thousand, eight hundred k. Yeah, so if he's
jumping his contract two years early, then he's arguably dropping
one point six million out of his earnings.
Speaker 3 (04:45):
Well, there you go. And but he dropped from well
over a million at the superannuation Fund to coming into
that job, so clearly he felt that he had a
mission to fulfill. He fulfilled it in the way that
he thought was better for New Zealand. But as it
turns out we all know now and it's easy with hindsight.
(05:06):
The decisions he made will go down in history, will
be the decisions that really sunk this economy, and now
we're fighting to get out of that. Yeah.
Speaker 2 (05:15):
So what happens with the Reserve Bank governor position? Now
I know the Deputy Christian Hawksby has taken over for
the time being. Then will there be an appointment made
in due course?
Speaker 3 (05:24):
Yeah? What happens is that the Board of the Reserve Bank,
they will consider names though it'll no doubt be I
would imagine advertised internationally for this job. And then the
recommendation is made to the Finance Minister. The Finance Minister
signs it off. So there will be a committee the
(05:46):
kitchen cabin to the National Party. They'll meet and they'll
decide on a governor. Even though they're meant to be
independent of the government, a political these decisions are always
a bit more political than what we was led to believe.
Speaker 4 (06:01):
And Adriana has been on a hiring blitz, has anty
over those time in the Reserve running.
Speaker 3 (06:06):
The Reserve hasn't all the publics.
Speaker 4 (06:09):
There's huge, huge amounts of people working there that weren't
working there before he was there exactly. So they could
be an interesting position if National put a new a
new boss, a new GARV that goes, maybe we don't
need all these people just to move.
Speaker 3 (06:22):
One number up and gone Brush.
Speaker 2 (06:25):
I'm sure he'd love to.
Speaker 4 (06:27):
That would be a great phoenix from that on the flames.
Speaker 2 (06:30):
Absolutely final one for you, Barry out a team. What
would your rate Adrian or as Reserve bank?
Speaker 3 (06:35):
Oh, he had a hel of the time and the
COVID thing didn't make it easy for him. I'd give
him the five five five yep, right, I.
Speaker 4 (06:43):
Feel like there's a begrudging five.
Speaker 2 (06:46):
Barry. Always good to see you, Thank you very much
for coming. And that is Senior political Correspondent Barry soapad
for more.
Speaker 1 (06:52):
From news talks'd be listen live on air or online
and keep our shows with you wherever you go with
our podcasts on iHeartRadio.
You're listening to a podcast from News Talk sed B.
Follow this and our wide range of podcasts now on
iHeartRadio Right Big.
Speaker 2 (00:17):
News Last Hour. Adrian noy He is stepping down as
Reserve Bank Governor at the end of the month. He
made the announcement today, four years before the end of
his second five year term. To discuss further, we're joined
by senior political correspondent Barry so big Ya Barry.
Speaker 3 (00:32):
Good afternoon, lad. It's nice to be here, Barry.
Speaker 4 (00:34):
A month's notice that seems very short and dramatic. Any
word of fees being pushed or leaving or.
Speaker 3 (00:40):
What's going that's always the question, isn't it what you pushed?
Or Well, the thing is I think he would have
been contemplating his future from the time that National won
the election. And to come to that conclusion is pretty
easy because when he was reappointed to the job by
Grant Robertson in twenty twenty two, you know, a five
(01:02):
year appointment a year after from an election, which was
really unusual because Grant Robertson knew quite forcefully from Nikola
Willison others that they didn't want Adrian or reappointed. Nevertheless,
I think it was his final finger to the National Party.
Speaker 4 (01:23):
There was a spike appointment as opposed to he thought
that Adrian Oire was the best person.
Speaker 3 (01:27):
Well, I think mistakenly Labor did think Adrian Or was
doing the right thing. I mean, Adrian Or was quite
public as more like a farmer. I always thought that
a leading banker. But he publicly said that he was
going to engineer a recession. While he most certainly did
that he used the ocr against the economy like a
firing squad, because it was all over the place, going
(01:51):
mainly in the wrong direction, going up, and sucking so
much money out of the economy that nobody had much
to spend. Needless to say, those on mortgage interest rates
the ones that suffered the most, but so did business
and the rest of it. So New Zealand into a recession.
And that's what the power of a reserve bank governor
(02:14):
is separate from the government. Statutorily they're separate. But you know,
I think there should be more inclusion from the Reserve
Bank and the beehive across the road.
Speaker 4 (02:25):
Yes, so we essentially had the hardest landing in the OECD. Right,
how much responsibility is that on the reserve.
Speaker 3 (02:35):
Feet Oh, totally. But don't forget he works to a
committee as well. So when they decide on the ocr
and what it's going to be, the committee of infinite
wisdom sits around and decides what's likely to happen in
the economy a minutes. You know, Economics, as we all know,
is a very inexact science, and so you can only
(02:56):
take a punt like the rest of us. But this
Adrena wall All was much more deliberate when it came
to the economy. He believed that he had his finger
on the pulse and hunting money was sort of out
of control. The government spend was out of control, and
that allowed them to spend the way they did. So look,
(03:19):
there's a lot resting on Adrian Or's shoulders. In a
personal sense, Adrian All was quite a nice block. I mean,
before he got these lofty positions. I remember having a
lovely dinner at the White House at Wemington, very expensive restaurant,
with another bank of mate of mine from New York,
and tasted one of the best bottles of wine I
(03:40):
remember with Adrian that night. But from then on in
he became more and more elusive. When it came to
journal's and so, having known him years ago, I really
don't know the man that I had dinner with that night.
Speaker 2 (03:55):
Do you think the writing has been on the wolf
for some time? Barry? I remember when he was on
with Mike on the Breakfast Show, I think two weeks ago.
He sat a very chip, a very happy, very jovial,
very different from the prickly persona that we've come to
know of Adrian.
Speaker 3 (04:08):
In fact, I listened to that interview and like you,
I thought, goodness, gracious me, old Adrian. He really thinks
he's on top of all this now, and indeed the
economy is starting to go in the right way. So
it maybe that Adrian thought, well, I've done the job.
You've got to remember this, the superannuation fund earning well
(04:30):
an excess of what he earned at the Reserve Banks.
Speaker 4 (04:33):
What did he end at the Reserve Bank? Its about
eight hundred thousand, eight hundred k. Yeah, so if he's
jumping his contract two years early, then he's arguably dropping
one point six million out of his earnings.
Speaker 3 (04:45):
Well, there you go. And but he dropped from well
over a million at the superannuation Fund to coming into
that job, so clearly he felt that he had a
mission to fulfill. He fulfilled it in the way that
he thought was better for New Zealand. But as it
turns out we all know now and it's easy with hindsight.
(05:06):
The decisions he made will go down in history, will
be the decisions that really sunk this economy, and now
we're fighting to get out of that. Yeah.
Speaker 2 (05:15):
So what happens with the Reserve Bank governor position? Now
I know the Deputy Christian Hawksby has taken over for
the time being. Then will there be an appointment made
in due course?
Speaker 3 (05:24):
Yeah? What happens is that the Board of the Reserve Bank,
they will consider names though it'll no doubt be I
would imagine advertised internationally for this job. And then the
recommendation is made to the Finance Minister. The Finance Minister
signs it off. So there will be a committee the
(05:46):
kitchen cabin to the National Party. They'll meet and they'll
decide on a governor. Even though they're meant to be
independent of the government, a political these decisions are always
a bit more political than what we was led to believe.
Speaker 4 (06:01):
And Adriana has been on a hiring blitz, has anty
over those time in the Reserve running.
Speaker 3 (06:06):
The Reserve hasn't all the publics.
Speaker 4 (06:09):
There's huge, huge amounts of people working there that weren't
working there before he was there exactly. So they could
be an interesting position if National put a new a
new boss, a new GARV that goes, maybe we don't
need all these people just to move.
Speaker 3 (06:22):
One number up and gone Brush.
Speaker 2 (06:25):
I'm sure he'd love to.
Speaker 4 (06:27):
That would be a great phoenix from that on the flames.
Speaker 2 (06:30):
Absolutely final one for you, Barry out a team. What
would your rate Adrian or as Reserve bank?
Speaker 3 (06:35):
Oh, he had a hel of the time and the
COVID thing didn't make it easy for him. I'd give
him the five five five yep, right, I.
Speaker 4 (06:43):
Feel like there's a begrudging five.
Speaker 2 (06:46):
Barry. Always good to see you, Thank you very much
for coming. And that is Senior political Correspondent Barry soapad
for more.
Speaker 1 (06:52):
From news talks'd be listen live on air or online
and keep our shows with you wherever you go with
our podcasts on iHeartRadio.
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