Steven Joyce: Grant Robertson risks undermining Reserve Bank independence

Reserve Bank governor Adrian Orr (left) and Finance Minister Grant Robertson. Back when monetary policy was left to politicians, the temptation to goose the economy beyond its capacity at election time was often too great. That’s why New Zealand was a world leader in removing the monetary policy remit from politicians and placing it in the hands of an independent entity. Which brings us to the second announcement of the week, the reappointment of the Reserve Bank governor by Robertson for another five years in charge. The Finance Minister should be taking steps to reinforce the bank’s focus, its independence, and the broad-based support for it as an apolitical institution.