-
Why the RBNZ faces political pressure from it’s housing market
In the last RBNZ rate decision, the RBNZ has been needing to reference the housing market in their monetary policy decisions. This is not a normal mandate for a central bank. So, why are they having to do this? A New Zealand surge in house prices There has been a huge increase in New Zealand house prices. This is partly being fuelled by the very low-interest rates which means that borrowers have access to favourable lending condition. This is allowing the housing sector to keep rising in prices. What does this create pressure for the RBNZ? Well, potentially this ‘ties the hands’ of the RBNZ and means that they ... (full story)