Orr Defends Timing of RBNZ’s Inflation Response as ‘Courageous’

New Zealand’s central bank was “courageous” to start tightening monetary policy before many of its peers, and being too out of step with others carries its own risks, Governor Adrian Orr said.

Appearing before parliament’s Finance and Expenditure select committee Thursday in Wellington, Orr was asked if the Reserve Bank was too slow to respond to inflation risks. He said getting out of step with other central banks risks instability in output and exchange rates.