Reserve Bank governor Adrian Orr has a lot on his plate at present. He is battling to hose down prices which have been rising faster than they have done for 30 years, while at the same time “maximising” sustainable employment.
It’s a task none of his predecessors had to undertake. Finance Minister Grant Robertson widened his remit to include full employment, but probably didn’t expect the job being put to the test so soon.
And, of course, Robertson’s future as finance minister will hang in the balance, particularly if inflation is still raging when electors go the polls next year.
Ironically, too, it was the government’s decision for the printing of money by the Reserve Bank as the country returned to something like normal after the Covid lockdowns, which stoked the fires of inflation.
Some might see elements of Greek tragedy taking shape. Continue reading “RBNZ governor must curb inflationary pressures while keeping an eye on employment trends”