Reserve Bank of New Zealand Governor Orr … this is unbelievable …
A central bank buying debt directly from the government issue is not something that will inspire confidence in markets. This will be viewed as a NZD negative.
Central banks get around this by buying sovereign debt from the market, not direct from the government press.
Orr is guilty of honesty here …. he is a trained and respected economist, he knows exactly what he is saying here.
I suspect this remark will be wound back by Orr and the RBNZ, you know "NO,. what I actually meant was …" or something like that. As I said above in the first line, the comment is unbelievable. Its not something that a central banker in a developed market would say. But, well, apparently he did.
