Q+A with Jack Tame Can New Zealanders trust the Reserve Bank?
9 snips
Sep 6, 2025 Join former Reserve Bank chair Arthur Grimes as he delves into the turmoil surrounding New Zealand's central bank following recent leadership resignations. Grimes shares his insights on the implications of political interference in monetary policy, raising concerns about trust and governance. He discusses the delicate balance of the Reserve Bank's inflation management amid new mandates, and critiques the politicization impacting its effectiveness. This conversation unveils the essential challenges in maintaining financial stability for Kiwis.
AI Snips
Chapters
Transcript
Episode notes
Damage To A Low-Key Reputation
- Arthur Grimes says the Reserve Bank's handling of the saga has been unfortunate and harmed its traditionally low-key reputation.
- He believes privacy concerns influenced the board's cautious public handling but some statements were misleading.
Privacy Over Transparency Can Backfire
- Grimes argues the board prioritised privacy and natural justice for the governor during the fallout.
- He also says some public statements misled, undermining transparency.
Short-Term Hit, Long-Term Recovery
- Grimes sees the reputational hit as short-term after both the governor and board chair resigned.
- He expects capable replacements and no lasting institutional damage if trust is restored.