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Cameron Bagrie: Economist on Adrian Orr's resignation as Reserve Bank Governor · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Well, adrianaw has gone three years early. Deputy Governor Christian
• 0:04
  Speaker 1: Hawksby will step in as an acting governor until the
• 0:06
  Speaker 1: last day of this month. The Finance Minister Nicolas Willis
• 0:10
  Speaker 1: acknowledged his service, does never told us why he quit.
• 0:14
  Speaker 1: Here is Reserve Bank Board chair Neil Quickly last night.
• 0:18
  Speaker 2: The job of the Reserve Bank Governor is one where
• 0:21
  Speaker 2: you face unrelenting critique of your actions. No matter what
• 0:25
  Speaker 2: you do, there is a time when you think, having
• 0:28
  Speaker 2: achieved what you wanted to achieve, that's enough.
• 0:31
  Speaker 1: And now we're joined by independent economist Kem Bagriy Hey
• 0:34
  Speaker 1: Cameron a good wanning. Everyone's got a theory about why
• 0:38
  Speaker 1: Adrian all left? What's yours?
• 0:42
  Speaker 3: Oh, I don't have a theory, go to the rumor mills.
• 0:45
  Speaker 3: Obviously an overdraft, but it's a tough gick. Well, it's
• 0:50
  Speaker 3: a tough job and sometimes individual sort of reflect in
• 0:55
  Speaker 3: regard to whether you want to continue in a role.
• 0:58
  Speaker 3: And obviously Adrian sort of that it's time to move on.
• 1:01
  Speaker 3: He's moved on, and the important thing is that who's
• 1:04
  Speaker 3: going to be next in the job. And we can
• 1:06
  Speaker 3: go back and self reflect in regard to the job.
• 1:09
  Speaker 3: He's done. But yeah, let's let's move on.
• 1:11
  Speaker 1: And it's it's obvious that the current government didn't have
• 1:13
  Speaker 1: confidence in them and they've been having a war over funding.
• 1:16
  Speaker 1: Because that's the thing about the Reserve Bank under Adrian
• 1:18
  Speaker 1: or suddenly it has it's mushroomed in it's and it's
• 1:24
  Speaker 1: what wants to do and who it employs.
• 1:28
  Speaker 3: You know, the Reserve Bank has certainly mushroomed over the
• 1:32
  Speaker 3: past a few years, some for good reasons and maybe
• 1:36
  Speaker 3: for some others. But yeah, there's a you know, I think, yeah,
• 1:40
  Speaker 3: the start he counts increased by what yeah, factor of
• 1:44
  Speaker 3: your two point five something like that. Yeah, so you
• 1:46
  Speaker 3: got a lot more regular for your oversight. There's some
• 1:49
  Speaker 3: justification for that. There's a few questions that probably did
• 1:52
  Speaker 3: ask on the other side as well. But you know,
• 1:55
  Speaker 3: when I think about the Reserve Bank, Yeah, and this
• 1:57
  Speaker 3: is particularly going back that he had ten to twenty
• 1:59
  Speaker 3: years here. Their main role is to be at monetary policy.
• 2:03
  Speaker 1: Yes, well, that's the thing is there's quite a few
• 2:05
  Speaker 1: people in the leadership teams that seem to have absolutely
• 2:07
  Speaker 1: no economic experience, and there's that Adrian's legacy to leave
• 2:10
  Speaker 1: behind a woke bank that wasn't actually looking after the
• 2:13
  Speaker 1: dollars and cents.
• 2:15
  Speaker 3: Yeah one one thing. You can have your critiques and
• 2:18
  Speaker 3: that sort of stuff, but yeah, you go back and
• 2:20
  Speaker 3: these It's been a pretty tough job over the past
• 2:23
  Speaker 3: sort of three or four years. Facing COVID went into
• 2:26
  Speaker 3: an extraordinary shop in regard to and do they over
• 2:31
  Speaker 3: engineer the economic recovery? The answer is yes. Have they
• 2:35
  Speaker 3: the over engineer the economic down to and the answer
• 2:37
  Speaker 3: is yes, to sort of put us back on the
• 2:39
  Speaker 3: economic plane of normality and normality now beacons. But there
• 2:45
  Speaker 3: is obviously a lot of questions about how the reserve
• 2:48
  Speaker 3: banks potentially overreached in other areas. Probably the biggest one
• 2:52
  Speaker 3: it's what the Reserve Bank has done in regard to
• 2:54
  Speaker 3: you're getting the banks to hold more capital. Of course,
• 2:57
  Speaker 3: when the banks have held more capital, I've just shifted
• 3:02
  Speaker 3: their capital from the low risk into the low risk
• 3:07
  Speaker 3: housing market at the expense of the business sector, and
• 3:10
  Speaker 3: that's been a bit of an economic break and productivity
• 3:12
  Speaker 3: and economic growth.
• 3:13
  Speaker 1: You're quite right, though, Cameron. The only real question is
• 3:16
  Speaker 1: who's going to do the job next to you? Preparing
• 3:17
  Speaker 1: your CV.
• 3:20
  Speaker 3: Haven't had that call and quite heaped with what I'm
• 3:22
  Speaker 3: doing at the moment, good.
• 3:23
  Speaker 1: Only Cameron Bagriy, Independent Economists. For more from Earlily
• 3:27
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• 3:30
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• 3:33
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