The National Party is “appalled” by Finance Minister Grant Robertson’s decision to re-appoint Reserve Bank Governor Adrian Orr.

Adrian Orr’s reappointment to the position for a five-year term was confirmed by the government this morning, after the unanimous recommendation by the RBNZ Board.

Minister of Finance Grant Robertson said stability and continuity were important considering global conditions, which included high inflation.

National’s Finance spokeswoman Nicola Willis said “we have repeatedly urged the Government to conduct an independent review of the Reserve Bank’s performance before endorsing the Governor for another five years.

Re-appointing him without first completing such an inquiry is a serious mistake.”

Willis said “in recent years, Adrian Orr as the Chair of the Monetary Policy Committee signed off on an extraordinary programme of money printing and cheap lending that pumped tens of billions of dollars into the economy. 

That programme directly contributed to house prices rising 28 per cent in one year, inflation rising to a 32-year high, and record bank profits.”

Willis said “New Zealanders now suffering through a cost of living crisis are owed some answers. 

The Government’s refusal to even ask these questions shows contempt for the New Zealand public. It’s not enough for the Minister of Finance to lean on the endorsement of the board he helped appoint. He should have kicked-off a thorough external review to satisfy himself and New Zealanders that the Bank did the best it could have. Instead, he has directly shied away from any semblance of accountability. The ‘ask no questions’ approach is unacceptable.”

Willis said “National would immediately initiate an independent inquiry into monetary policy decision making over the past two years, including its contribution to the cost of living crisis, unsustainable house price rises, co-ordination with fiscal policy, losses on bond purchases and its contribution to bank profits.”

But Grant Robertson said “Adrian has demonstrated the skills, knowledge and experience to help steer the financial system through the 1-in-100 year economic shock of the pandemic.

I am happy to endorse the recommendation of the Board. I have full confidence that he will continue to display the same integrity and leadership in performing his duties as Governor in what is still a challenging environment.”