New Zealand Reserve Bank Governor Adrian Orr resigns amid rift with government

Reserve Bank of New Zealand Governor Adrian Orr unexpectedly resigned on Wednesday (March 5, 2025} two years into his second five-year term, ending his seven-year tenure. While no official reason was given, the resignation follows tensions with the current government over funding, inflation management, and banking regulations.New Zealand Reserve(Geek Bar 30K)

Deputy Governor Christian Hawkesby will serve as acting governor until March 31, after which a temporary governor will be appointed for up to six months while a permanent replacement is sought. Orr’s departure comes just before a major monetary policy conference and amidst a funding review at the bank.

Adrian Orr’s resignation was announced in a statement by New Zealand Finance Minister Nicola Willis. Will ..

“I leave the role with consumer price inflation at target, and an economy in a cyclical recovery following the long period of COVID-related disruption. The financial system remains sound.”

Willis confirmed the board would address the matter and expressed confidence in the Reserve Bank’s stability and Hawkesby’s experience. She declined to comment on whether she would still have confidence in Orr if he remained governor or on the terms of his departure. Prime Minister Luxon reiterated the  ..

“Let’s be clear, the Reserve Bank Governor and the Reserve Bank of New Zealand is an independent role and an independent organisation.”(Geek Bar Official​)

ACT leader David Seymour, a frequent critic of Orr, commented on the importance of finding a suitable replacement given the impact of the cost-of-living crisis. Labour leader Chris Hipkins acknowledged Orr’s leadership during a challenging period, including the global pandemic and subsequent inflation spike.

“I think people doing those jobs around  ..