Finance Minister Nicola Willis announced a surprise inquiry into the actions of the Reserve Bank during the Covid-19 pandemic with a stated purpose to identify any lessons that could be learned to improve the monetary policy response to future major events.

Adrian Orr was the Reserve Bank governor from 2018 until his resignation last year. 

Former Reserve Bank governor Michael Reddell welcomes the inquiry but believes the actions of the Reserve Bank were not malicious.

"It wasn't political, it wasn't intentioned to generate high inflation. It was just badly misreading the economy," he told Heather du Plessis-Allan.

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