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<div class="gmail-text-wrapper"><h1> Māori, sign language and straight talking: New Governor, new style at Reserve Bank </h1> <div class="gmail-publish"> 10 May, 2018 10:37am <div class="gmail-read-time"> <span class="gmail-clock-pic gmail-svg-bg gmail-svg-clock-icon-9e9f9f"></span> 3 minutes to read </div> </div> </div> <div class="gmail-wrapper gmail-clearfix gmail-pb-feature gmail-pb-layout-item gmail-pb-f-video-video-player"> <div style="display:block;max-width:100%"> <div class="gmail-video-wrapper" style="padding-top:56.25%"> <div id="gmail-vjs_video_5782773015001" class="gmail-video-js gmail-vjs-paused gmail-vjs-workinghover gmail-vjs-v6 gmail-bc-player-S1BXZn8t_default gmail-bc-player-S1BXZn8t_default-index-0 gmail-vjs-mouse gmail-vjs-ima3-not-playing-yet gmail-vjs-vpaid-controls-disabled gmail-vjs-ima3-html5 gmail-vjs-plugins-ready gmail-vjs-error gmail-vjs-controls-disabled gmail-vjs-ad-controls gmail-vjs-errors gmail-vjs-skin-nzherald gmail-not-hover gmail-vjs-user-inactive" style="width:100%;height:100%" lang="en-us"><div class="gmail-vjs-text-track-display"></div><div class="gmail-vjs-ima3-ad-container"><div style=""></div></div><div class="gmail-vjs-error-display gmail-vjs-modal-dialog" tabindex="-1"><p class="gmail-vjs-modal-dialog-description gmail-vjs-control-text" id="gmail-vjs_video_5782773015001_component_435_description">This is a modal window.</p><div class="gmail-vjs-modal-dialog-content"><div class="gmail-vjs-errors-dialog" id="gmail-vjs-errors-dialog"><div class="gmail-vjs-errors-content-container">
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Reserve bank Governor Adrian Orr sent a strong message to the market
with his first monetary policy statement today. Source: Reserve Bank of
New Zealand</figcaption> </div> </figure> </header> </div> <div class="gmail-wrapper gmail-clearfix gmail-full gmail-pb-feature gmail-pb-layout-item gmail-pb-f-article-slimline-byline" id="gmail-f0ppApmGY5tjOq"> <div class="gmail-byline gmail-default-border gmail-bio-with-share gmail-has-author"> <div class="gmail-author-name"> <span class="gmail-author gmail-author-space"> <div class="gmail-image-container"><img class="gmail-author-img" src="https://s3.amazonaws.com/arc-authors/nzme/ed47272d-9902-4d34-afec-2aabe22990b9.png" alt="Liam Dann"></div> <div class="gmail-bio-text"> <span class="gmail-author"> <a href="https://www.nzherald.co.nz/author/liam-dann/"> By: <span class="gmail-section-national-color gmail-author-title">Liam Dann</span> </a> </span> <div class="gmail-author-bio">NZ Herald Business Editor at Large</div> <a class="gmail-author-attr" href="mailto:liam.dann@nzherald.co.nz">liam.dann@nzherald.co.nz</a> <a class="gmail-author-attr" href="https://www.twitter.com/@liamdann">@liamdann</a> </div></span> </div> <div class="gmail-byline-shares-wrapper"> <div class="gmail-byline-shares"> <div class="gmail-utility-tools"> </div> <div class="gmail-social-tools"> <a class="email gmail-tool gmail-first gmail-share-button gmail-svg-bg gmail-svg-email-icon" tabindex="_tbidx_"> </a><a class="gmail-facebook gmail-tool gmail-share-button gmail-svg-bg gmail-svg-facebook-icon" tabindex="_tbidx_"> </a><a class="gmail-twitter gmail-tool gmail-share-button gmail-svg-bg gmail-svg-twitter-icon" tabindex="_tbidx_"> </a><a class="gmail-share-container gmail-tool gmail-share-button gmail-svg-bg gmail-svg-share-icon" tabindex="_tbidx_"> </a><a class="gmail-bookmark gmail-tool gmail-last gmail-not-alone gmail-share-button gmail-svg-bg gmail-svg-bookmark-icon gmail-section-business" tabindex="_tbidx_"> </a><div class="gmail-hidden-shares extra-shares"> <div class="extra-share-wrapper"> <div class="gmail-icon-wrapper"> <a class="gmail-facebook gmail-tool gmail-first gmail-share-button gmail-svg-bg gmail-svg-facebook-icon" tabindex="_tbidx_"> </a><span class="gmail-icon-name"></span> </div><div class="gmail-icon-wrapper"> <a class="gmail-twitter gmail-tool gmail-share-button gmail-svg-bg gmail-svg-twitter-icon" tabindex="_tbidx_"> </a><span class="gmail-icon-name"></span> </div><div class="gmail-icon-wrapper"> <a class="email gmail-tool gmail-share-button gmail-svg-bg gmail-svg-email-icon" tabindex="_tbidx_"> </a><span class="gmail-icon-name"></span> </div><div class="gmail-icon-wrapper"> <a class="gmail-linkedin gmail-tool gmail-share-button gmail-svg-bg gmail-svg-linkedin-icon" tabindex="_tbidx_"> </a><span class="gmail-icon-name"></span> </div><div class="gmail-icon-wrapper"> <a class="gmail-google-plus gmail-tool gmail-share-button gmail-svg-bg gmail-svg-googleplus-icon" tabindex="_tbidx_"> </a><span class="gmail-icon-name"></span> </div><div class="gmail-icon-wrapper"> <a class="gmail-whatsapp gmail-tool gmail-share-button gmail-svg-bg gmail-svg-whatsapp-icon" tabindex="_tbidx_"> </a><span class="gmail-icon-name"></span> </div><div class="gmail-icon-wrapper"> <a class="gmail-pinterest gmail-tool gmail-share-button gmail-svg-bg gmail-svg-pinterest-icon" tabindex="_tbidx_"> </a><span class="gmail-icon-name"></span> </div><div class="gmail-icon-wrapper"> <a class="gmail-reddit gmail-tool gmail-last gmail-share-button gmail-svg-bg gmail-svg-reddit-icon" tabindex="_tbidx_"> </a><span class="gmail-icon-name"></span> </div> </div> <span class="gmail-share-close gmail-svg-bg gmail-svg-close-icon-white"></span> </div> </div> <div class="gmail-clear"></div> </div> </div> </div> </div> <div class="gmail-wrapper gmail-clearfix gmail-full gmail-pb-feature gmail-pb-layout-item gmail-pb-f-article-body" id="gmail-f0tGnGpGY5tjOq"> <div id="gmail-article-body" class="gmail-article-body gmail-article-body-elements"> <div id="gmail-article-content"> <p class="element element-paragraph"> New Reserve bank Governor Adrian Orr sent a strong message to the market with his first monetary policy statement today.</p> <p class="element element-paragraph"> The material economic information – the outlook for interest rates - remains largely the same.</p> <p class="element element-paragraph">
There was a subtle shift - the forecast for the next rate rise pushed
out further into 2019 and an explicit reminder that things change and
the next move could also be down.</p> <p class="element element-paragraph"> The wording of monetary policy statements is always very carefully chosen and this one was no different.</p> <div class="gmail-ad-container gmail-has-text gmail-max-width-300 gmail-max-width-300" style="max-width:300px"> <div class="gmail-ad-text-before">Advertisement</div> <div id="gmail-ContentRect" class="gmail-pb-ad-container gmail-max-width-300 gmail-min-height-250 gmail-max-width-300" style="width:300px;height:250px;min-height:250px;max-width:300px"></div> <div class="gmail-ad-contact-text"><a href="https://advertising.nzme.co.nz/">Advertise with NZME.</a></div> </div> <div class="gmail-border-bottom-airy"></div> <p class="element element-paragraph"> So make no mistake, times have changed.</p> <p class="element element-paragraph"> There was the brief Māori greeting and farewell, appropriately formal, but still a first in this environment.</p> <p class="element element-paragraph"> At the press conference there even some sign language from the Governor – for which he apologised, as it was his first attempt.</p> <p class="element element-paragraph"> Then there was the cut to the chase.</p> <p class="element element-paragraph"> All the most relevant information was in the first two lines of the copy. Shocking, I know.</p> <p class="element element-paragraph">
Historical precedent has been to include the rates outlook as a last
line - as if it was the dessert to be earned only after the meat and
potatoes of the domestic and international analysis was digested.</p> <p class="element element-paragraph">
"The Official Cash Rate (OCR) will remain at 1.75 per cent for some
time to come. The direction of our next move is equally balanced, up or
down. Only time and events will tell," the statement began.</p> <p class="element element-paragraph"> Compare that with a typical last line from previous statements:</p> <p class="element element-paragraph">
"Monetary policy will remain accommodative for a considerable period.
Numerous uncertainties remain and policy may need to adjust
accordingly."</p> <p class="element element-paragraph"> They say the same thing but the latter doesn't translate to any real conversation.</p> <p class="element element-paragraph"> A similar tone remained throughout.</p> <p class="element element-paragraph"> It's a significant and very deliberate shift – towards a more accessible and less arcane institution.</p> <p class="element element-paragraph">
It was the language of an economist who has built a career on his
ability to communicate and de-mystify the complexities of his
profession.</p> <p class="element element-paragraph"> In the press conference this morning Orr was serious in tone.</p> <p class="element element-paragraph">
Of course, the language did get technical at times. The interest of
financial commentators in issues like inflation forecasting and output
gaps forced Orr to go there.</p> <p class="element element-paragraph">
But he wasn't shy of responding bluntly and honestly to questions from
the floor. Or calling them out if they didn't meet the grade.</p> <p class="element element-paragraph">
"That's a statement. What would be the question?", Orr said at one
point, addressing one of the pet hates of many conference attendees the
world over.</p> <p class="element element-paragraph"> Are you relieved by the fall in the currency?</p> <p class="element element-paragraph">
"Relieved would be an emotion and I don't have emotions about
currency," he quipped, offering a personable reminder of inherently
impersonal nature of central banking.</p> <p class="element element-paragraph"> He stopped short of jokes and one-liners, but there were anecdotes.</p> <p class="element element-paragraph">
In a nod to the monetary policy "sweet spot" (his words) that he has
inherited, Orr recalled being told once that: if you have a difficult
choice to make about whether to raise or cut rates then you are probably
in a good place.</p> <p class="element element-paragraph"> Questioned
about the risk that new style might open him up to misinterpretation by
the market, he drew on a classroom anecdote: "Sorry, my essay was so
long Sir, I didn't have time to write a short one."</p> <p class="element element-paragraph"> The Reserve Bank's job was to explain things clearly for more than just "a handful of retail bank economists", he said.</p> <p class="element element-paragraph"> "Our challenge is to speak in plain English".</p> <p class="element element-paragraph"> If today's monetary policy statement was a sign of things to come, then Orr has made a great start.</p> </div> </div> </div>
<br clear="all"><br>-- <br><div class="gmail_signature" data-smartmail="gmail_signature">=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+<br><br> Harold F. Schiffman<br><br>Professor Emeritus of <br> Dravidian Linguistics and Culture <br>Dept. of South Asia Studies <br>University of Pennsylvania<br>Philadelphia, PA 19104-6305<br><br>Phone: (215) 898-7475<br>Fax: (215) 573-2138 <br><br>Email: <a href="mailto:haroldfs@gmail.com" target="_blank">haroldfs@gmail.com</a><br><a href="http://ccat.sas.upenn.edu/~haroldfs/" target="_blank">http://ccat.sas.upenn.edu/~haroldfs/</a> <br><br>-------------------------------------------------</div>
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