Adrian Orr: Reserve Bank Governor defends the sudden cut to the Official Cash Rate

The Mike Hosking Breakfast

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Reserve Bank Governor Adrian Orr is defending his change of tune on the Official Cash Rate.

He's cut the OCR to 5.25%.

Some economists are criticising the suddenness of the change of direction, with Brad Olsen calling on the central bank to take accountability for radically changing its forecast without a radical change in circumstances.

But Orr told Mike Hosking the situation has changed since his last Monetary Policy Statement, three months ago.

He says plenty of time and information has changed since May, and the Reserve Bank has communicated that in its Monetary Policy Review in July.

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