RBNZ Blasted for Pandemic-Era Rate Call

Finance Minister Nicola Willis has released an independent review of the Reserve Bank's (RBNZ) monetary policy decisions during the Covid-19 pandemic. The review, conducted by Massachusetts Institute of Technology Professor Athanasios Orphanides and former RBNZ Governor Adrian Orr had a tense working relationship, was critical of the RBNZ for keeping the official cash rate too low for too long.

Willis said that the review highlighted the need for more effective monetary policy decisions during times of crisis. The RBNZ has been criticized in the past for its slow response to inflation and its failure to anticipate economic downturns.