New Zealand Finance Minister Bill English on the RBNZ and Auckland housing prices
- Has given his strongest indication yet that the Reserve Bank is considering a third round of tighter Loan to Value Ratio (LVR) controls
- In response to another resurgence in the Auckland housing market
- Could announce them as soon as tomorrow.
English was asked on the eve of the Reserve - "It's up to the bank. There's still a bit of uncertainty about just what the dynamics of the Auckland market are. The bank has signaled pretty clearly that it takes the issue quite seriously and they've got a range of tools and they're likely to want to use them"
via interest.co.nz
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At the margin, the RBNZ dealing with prices in this way wnhances the prospects for further interest rate cuts, and is a bearish input for the NZD
(NZD lower:
