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Speaker 1: You're on news talks herebit it's fourteen after six. We

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Speaker 1: tried to get to Adrian or today he's resigned. If

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Speaker 1: you're just joining us suddenly. No one knows why we

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Speaker 1: tried to get to him today. We asked the Reserve

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Speaker 1: Bank of New Zealand's media team if he could come

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Speaker 1: on the program. We heard nothing back from him. We called,

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Speaker 1: we text Nada, crickets the rumor mill now turning. Of course,

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Speaker 1: no definitive reason was given for this departure. Dnay Chips

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Speaker 1: Trainey is the Herald Wellington business reporter who's with us

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Speaker 1: this evening. Hi Janee, Hi Ryan. Gosh, this was one

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Speaker 1: out of the blue.

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Speaker 2: It was I actually thought when my colleague Thomas Coglan

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Speaker 2: told me, I thought he was joking in the office

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Speaker 2: this afternoon just to evoke a reaction from me. It

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Speaker 2: was definitely a surprise. Now, tensions have been high between

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Speaker 2: adrianaw and Nikola Willis, and that is perhaps my best

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Speaker 2: scarceys to what's happened here. My guess, and this is

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Speaker 2: not just my guess, is that things might have hit

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Speaker 2: breaking point. Now. There are a couple of things that

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Speaker 2: have been happening. Firstly, the Reserve Bank has been asking

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Speaker 2: the government for more funding. It's received a lot more

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Speaker 2: funding in recent years because the sort of work that

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Speaker 2: it's been doing has expanded, particularly in terms of the

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Speaker 2: way it regulates banks and insurers. So that's one thing.

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Speaker 2: Nikola Willis has talked to The Herald last weekend and

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Speaker 2: basically said that she thought the Reserve banks requests weren't

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Speaker 2: reasonable and really emphasized the fact that the government's actually

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Speaker 2: trying to cut the amount of money at spending. So

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Speaker 2: that is one issue. Another issue is the way the

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Speaker 2: Reserve Bank goes about regulating banks. There are these bank

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Speaker 2: capital rules that we've been talking about for a number

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Speaker 2: of years that are there to protect banks and prevent

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Speaker 2: them from collapsing. Nicola Willis has been looking at whether

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Speaker 2: those could be watered down. That's something the banks would like,

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Speaker 2: and that is something that some people think would support

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Speaker 2: more competition in the banking sector. So I think those

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Speaker 2: are two issues of contention and that they might have

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Speaker 2: contributed to this decision. That is only that is only

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Speaker 2: a guess.

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Speaker 1: I think you're onto something with the funding for the

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Speaker 1: Reserve Bank itself, and I when you look at the

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Speaker 1: staff numbers, somebody's just texted, have you guys mentioned the

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Speaker 1: number of staff working at the Reserve Bank years? Yeah,

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Speaker 1: and we did mention that earlier in the show, but

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Speaker 1: just for those who aren't aware, in twenty eighteen, two

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Speaker 1: hundred and fifty five full time equivalent employees, now six hundred.

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Speaker 1: Do you know there are reasons why that number has increased.

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Speaker 1: You know that they are doing different things, but is

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Speaker 1: that justified six hundred?

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Speaker 2: Yeah, I mean it does. It's a lot, and it's

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Speaker 2: hard to know, and I think it's a tough pool

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Speaker 2: to swallow when one of the key jobs keeping inflation

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Speaker 2: in check is something the Reserve Bank has failed at,

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Speaker 2: Like inflation was above the target range for three years,

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Speaker 2: have got as high as and your rate god as

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Speaker 2: high as I think was just over seven percent. So

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Speaker 2: you know that that is tough when you go, well,

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Speaker 2: what's what's one of your key jobs and you didn't

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Speaker 2: do it properly. Now a few of the other things though,

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Speaker 2: that the bank is doing. One of the big things

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Speaker 2: is it's working on standing up this deposit compensation scheme.

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Speaker 2: So that's a whole new insurance scheme that means if

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Speaker 2: your bank collapses, you get some of your money back. Currently,

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Speaker 2: if your bank collapses or you or even your credit

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Speaker 2: union or other non bank deposit taker, you won't necessarily

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Speaker 2: get your money back. So there's that's a huge piece

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Speaker 2: of work to create this insurance scheme around that. So

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Speaker 2: that is, for example, something that Adrian or would point

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Speaker 2: to and say that this is a this is a

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Speaker 2: big deal and we need more stuff for that.

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Speaker 1: Yeah to you know, I guess, Look, Wellington's a small place.

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Speaker 1: We're all going to find out eventually what happened, don't we.

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Speaker 2: We do see Adriana or walking around the streets and

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Speaker 2: he will be asked. I mean, the timing of this

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Speaker 2: is also unusual. It feels like it caught it caught

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Speaker 2: aronoff guard. The Reserve Bank called a last minute press

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Speaker 2: conference at five o'clock today where the board chair spoke

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Speaker 2: to us again didn't provide too much more insight, but

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Speaker 2: suggested that my theories, you know, might be correct. The

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Speaker 2: other awkward thing is that the Reserve Bank is hosting

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Speaker 2: this massive international conference tomorrow and on Friday, So we've

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Speaker 2: got central bankers from around the world coming to Wellington,

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Speaker 2: including you know, high profile people like the former Federal

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Speaker 2: Reserve Chair ben benenk Catherine Man. You know, we're celebrating

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Speaker 2: thirty five years of inflation targeting. The Reserve Bank of

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Speaker 2: New Zealand is traditionally well respected around the world because

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Speaker 2: we helped pioneer the approach that central banks take today.

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Speaker 2: So to come out with this, and Nikola Willis said

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Speaker 2: it was Adriana's choice to come out with this the

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Speaker 2: day before this conference, which is a big deal, is interesting.

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Speaker 2: The other interesting thing is that the Reserve Bank said

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Speaker 2: I couldn't attend the conference in person because there was

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Speaker 2: not enough room and it's being live streams, so make

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Speaker 2: of that what you will.

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Speaker 1: So Adrian's not going to it.

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Speaker 2: Not going to it.

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Speaker 1: No, So he's thrown his toys in a massive way.

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Speaker 1: He's he's having a massive wobbley. That's my that's my opinion.

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Speaker 1: I'm not asking for a response from you, Hot takes,

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Speaker 1: Hot takes.

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Speaker 2: This is that you know, this is the thing and

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Speaker 2: in the absence of a of a reason of you know,

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Speaker 2: the Reserve Bank coming forward and Adrian or fronting and

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Speaker 2: this is what this is what happens. We fill the void.

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Speaker 1: Yeah, well consider it fell Donat ship Trainey in Zid

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Speaker 1: hero At Wellington Business Supporter. Thanks so much for your time.

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Speaker 1: It is nineteen minutes after six. What else do you

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Speaker 1: read but massive wobbly from petulant child who didn't get

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Speaker 1: what he wanted in the budgets for nine two the

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Speaker 1: number to text nineteen after six will take a look

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Speaker 1: at reporting season. Obviously we've been reporting on reporting season

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Speaker 1: for the last couple of weeks. What does it mean

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Speaker 1: for New Zealand Inc? What does it mean for the

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Speaker 1: stock market? Going for Milford Neck For more from Heather

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Speaker 1: Duplessy Allen Drive, listen live to news talks it'd be

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Speaker 1: from four pus weekdays, or follow the podcast on iHeartRadio