Nov 10 • 9M

RBNZ rebuffs Willis' criticism

Reserve Bank defends its own monetary policy review against National's accusation it 'pulled its punches' & 'failed to deliver accountability'; Orr won't comment on personal attacks

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Bernard Hickey
The latest daily snapshot of the news, detail, insight and analysis on geo-politics, the global economy, business, markets and the local political economy for citizens and decision-makers of Aotearoa-NZ.
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TLDR: Te Pūtea Matua (RBNZ) has released its own review of how it ran monetary policy over the last five years, saying it could have done a few things better, but that it broadly met its mandate and that inflation would have risen to 6% regardless of what it did during 2020 and 2021.

Both Reserve Bank Chair Neil Quigley and Governor Adrian Orr rejected the criticisms of National and ACT that the report “pulled its punches” and was an exercise in the central bank “patting itself on the back.” Quigley said yesterday the fully independent inquiry called for by the National, ACT and Green parties was not necessary, but the bank would cooperate if one was ever launched. Orr dismissed National’s comments and said he would not comment on personal criticisms of Orr by ACT Leader David Seymour.

The RBNZ’s review of its performance over the pandemic finds that its monetary policy decisions were “consistent with the data available” during a challenging time. File Photo: Lynn Grieveson / The Kākā

I will do a fuller analysis with more detail on the review and reaction in a separate article and podcast later today, including audio of the news conference after the release of the 122 page report and 18 pages of peer review. They’re worth a separate deep-dive. I’ll also no doubt talk about with paying subscribers in our weekly Ask Me Anything session and with co-host Peter Bale in our weekly ‘hoon’ webinar at 5pm today, which paying subscribers can join here.

Elsewhere in the news overnight and this morning:

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