Q+A: Reserve Bank Governor Adrian Orr
Q+A: Reserve Bank Governor Adrian Orr interviewed by Jack Tame
Reserve Bank Governor Adrian Orr warns against investing in high-risk ‘duds’ while bank deposit rates are low.
Adrian Orr told the Q+A programme, The Reserve Bank and other regulators are keeping a close eye on the Finance Industry.
“So it's time to have proper conversations and not be sold duds around high-risk investments that aren't justified by the returns. So all of this talk about us having learnt and being responsible as financial advisors — time to step up.”
Mr Orr also told Q+A, he wants to see businesses “get going on investment” and the government “keep going on its planned expenditure.”
“And so our challenge is that that spending actually gets done, because there are lags and delays and challenges around infrastructure spend. You can more immediately do the consumption spending and the welfare transfer payments, so we are confident that the expectation is to spend. We will be watching closely to see whether the impulse is coming through.”
He says the chance of recession is “not in our central forecasts.
“Our projections are that economic growth will be picking up.”
When asked about the government’s self-imposed debt limits, Mr Orr told Q+A, “I am absolutely comfortable that this government and any other government would act sensibly, that they know that there's no electric fence at 20% of GDP.”
Please find the full transcript attached and you can watch the interview here.