Hamish Rutherford: Political pressure rising on a political

Hamish Rutherford: Political pressure rising on a political Reserve Bank


Hamish Rutherford: Political pressure rising on a political Reserve Bank
28 Apr, 2021 05:27 AM
5 minutes to read
Finance Minister Grant Robertson and Reserve Bank governor Adrian Orr in 2018. Photo / Mark Mitchell.
OPINION:
Precisely who is in charge when the Reserve Bank decides to restrict lending in the name of maintaining financial stability has been hard to pin down for a long time.
Back in 2013, the
Reserve Bank began the process of developing loan to value ratio (LVR) restrictions, which would have a significant impact on many aspiring first-home buyers, a politically important group that even then was facing diminishing affordability.
But the central bank's then governor, Graeme Wheeler, a former top international official with little political experience, was nowhere to be seen, as a debate over the policy brewed.

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