RBNZ: Adrian Orr Resigned Due to Disagreement Over Funding Cuts

New Zealand's central bank, Reserve Bank of New Zealand (RBNZ), said former governor Adrian Orr resigned due to disagreement over government cuts to the bank's funding. Orr decided to quit after the board agreed to significantly less money in a new funding agreement than he thought was necessary. Orr received payments in accordance with his appointment, including a payment in lieu of a notice period and a restraint of trade payment. The amounts will be disclosed in the RBNZ Annual report.

Title: RBNZ's Adrian Orr Resigns Over Funding Disagreement

New Zealand's central bank, the Reserve Bank of New Zealand (RBNZ), announced that former governor Adrian Orr resigned due to a disagreement over government cuts to the bank's funding. Orr stepped down after the board agreed to significantly less money in a new five-year funding agreement than he deemed necessary for the organization's viability [1].

In response to Official Information Act requests, the RBNZ released documents detailing Orr's resignation. The bank stated that Orr decided to quit after it became clear that the board was willing to agree to considerably less funding than he thought was required. The decision was distressing for Orr, who felt that he could not continue in his role with significantly reduced funding [1].

Orr received payments in accordance with the terms and conditions of his appointment, including a payment in lieu of working a notice period and a restraint of trade payment. The amounts will be disclosed in the RBNZ Annual Report [1].

The RBNZ has been restructuring its executive team and is now considering a broader organizational overhaul following a 25% cut to its budget. The bank has already seen the departure of several senior executives, including Kate Kolich, Greg Smith, and Nigel Prince, and has plans to reduce its executive leadership team to four members [2][3].

The New Zealand dollar has been impacted by these developments, falling to around $0.603 on Tuesday, despite optimism over US-China trade talks. Investors remain hopeful about the talks, but the currency remains close to an eight-month high reached last week [3].

Prime Minister Christopher Luxon has called for the RBNZ's Monetary Policy Committee to meet more frequently to assess interest rates, suggesting that the current meeting schedule is too infrequent. The RBNZ's last meeting was held on November 28, and the next is scheduled for February 19 [4].

References:
[1] https://www.bloomberg.com/news/articles/2025-06-10/rbnz-says-adrian-orr-resigned-due-to-disagreement-over-funding
[2] https://www.rnz.co.nz/news/national/563219/wide-reserve-bank-restructure-to-follow-executive-and-funding-changes
[3] https://www.tradingview.com/news/te_news:461785:0-new-zealand-dollar-declines/
[4] https://www.marketscreener.com/quote/currency/NEW-ZEALAND-DOLLAR-US-DOL-2373619/news/RBNZ-restructures-leadership-team-to-consult-on-organisational-overhaul-50162486/