Maverick Adrian Orr Resigns as New Zealand's Central Bank Governor

Adrian Orr, known for his unorthodox policies, resigned as New Zealand's central bank governor amid clashes with Finance Minister Nicola Willis. Orr's tenure saw significant monetary policy changes, including rate cuts during COVID and subsequent hikes. His resignation leaves the bank leaderless during an economic downturn.

Adrian Orr, recognized for his bold and unconventional approach as New Zealand's central bank governor, announced his resignation on Wednesday. This unexpected move comes amidst ongoing disagreements with Finance Minister Nicola Willis. Orr's seven-year tenure was marked by drastic monetary policy shifts, notably during the COVID-19 pandemic.

Orr's policies, supporting aggressive rate cuts followed by sharp hikes post-pandemic, garnered both praise and criticism. Supporters lauded his swift action in crisis times, while critics argued his decisions exacerbated inflation and led to a recession. With the country facing its worst economic downturn in decades, Orr leaves the Reserve Bank of New Zealand (RBNZ) without a permanent head.

RBNZ's board chair, Neil Quigley, stated that Orr felt he had met his objectives and chose to step down amidst 'unrelenting critique.' The government, currently negotiating the bank's long-term financing, poses potential funding cuts. The bank's path forward remains uncertain, highlighting tensions between Orr and government powers, specifically concerning Maori cultural integration into bank operations.

(With inputs from agencies.)