NZ: Adrian Orr to be RBNZ Governor – TDS
According to Annette Beacher, Chief Asia-Pac Macro Strategist at TDS, Adrian Orr as RBNZ Governor is an excellent choice as he is a person considered to be an ‘internal’ candidate given his extensive RBNZ experience, but also has widespread “outside” experience including a decade as the CEO of the successful sovereign wealth fund NZ Super Fund.
“Orr was always on the short list of potential candidates.”
“NZD firmed 30pips to $US0.6889 on the headlines. We have no strong view as to whether he’s a dove or a hawk, but some of the “uncertainty” premium has been reversed.”
“He assumes the role in late March 2018. By then, we ‘should’ know the RBNZ’s newly expanded mandate, and whether there will be a “board” decision-making process with votes and minutes.”
“Now that a key uncertainty has been resolved, the markets can turn to Thursday’s half-year budget update (HYEFU) and the extent of the planned deterioration in the fiscal books to “pay for” the litany of the LNG coalition’s policies.”