Adrian Orr, known as a maverick policymaker, announced his resignation as New Zealand's central bank governor on March 5. During his tenure, he implemented bold monetary policy changes amidst the COVID-19 pandemic and modernized the RBNZ's operations.
While his supporters praised his decisive actions, critics accused him of initially cutting rates too rapidly, leading to inflation, and later raising them sharply post-pandemic, sparking a recession.
Orr did not provide a specific reason for his departure, leaving the bank temporarily headless during a challenging period. The RBNZ and government are in talks regarding the bank's finances, with the possibility of funding reductions being considered alongside wider government budget cuts.
Neil Quigley, the Reserve Bank of New Zealand's board chair, explained in a press conference that Orr believed he had accomplished his goals and saw no reason to continue amid constant criticism.
Described as "colourful" and "larger-than-life," Orr's pragmatic approach and strong opinions won him a reputation in financial circles. He notably incorporated Maori language and heritage into the bank's operations, a move that set him apart from the government's stance on reducing the use of Maori language in official settings.
Despite facing criticism, especially from the National Party, Orr made significant policy shifts during his tenure, including holding rates against market expectations before eventually cutting them in response to economic conditions. His leadership during the pandemic included rate cuts, asset purchases, and lending programs to support the economy.
Upon reappointment for a second term, concerns were raised about the bank’s response to COVID, leading to tense exchanges between Orr and Finance Minister Nicola Willis during parliamentary sessions. Willis offered a brief farewell, saying, "I wish him well for the future."