MNI BRIEF: RBNZ Governor Adrian Orr Reappointed For Five Years

Reserve Bank of New Zealand Governor Adrian Orr has been reappointed to another five year term ahead of a review to be released later this week outlining the bank's monetary policy performance over the past five years.

The reappointment was announced by New Zealand Finance Minister Grant Robertson, saying this is "a time when stability and continuity are paramount for the Bank." The reappointment was greeted with protest from the country's opposition National Party, who had called for a 12-month extension, which would allow them to make a decision on the next governor should they win next year's national election. (See RBNZ : Opposition Leader Luxon Calls On Government Not To Reappoint RBNZ Gov Orr)

Another five years will provide Orr with the opportunity to burnish his legacy by attempting to rein in inflation. Quarterly inflation accelerated to a 2.2% q/q rate in the September quarter for a 7.2% y/y rise. Orr has overseen eight consecutive rate hikes, including five 50bp increases, and is expected to consider a possible 75bps hike at its November 23 meeting. (See MNI BRIEF: CPI Shock May Push 75bp Hike On To RBNZ Radar)

The RBNZ called on the government in October to retain its 1% to 3% inflation target but advocated the removal of house price sustainability from its remit after the first round of its monetary policy remit review. (See MNI BRIEF: RBNZ Sets Sights On Maintaining Inflation Targeting). The Bank will release The Review and Assessment of the Formulation and Implementation of Monetary Policy on November 10.