The New Zealand Institute of Economic Research (NZIER) with their considered view on the Reserve Bank of New Zealand's interest rate path in 2015
- says the RBNZ cannot justify any interest rate change in 2015
- RBNZ will use prudential tools to damp Auckland housing prices
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The NZIER says in the report:
- There is no inflation in the economy for the RBNZ to control except in the Auckland housing market
- Moderate growth, subdued inflation and global risks suggest monetary policy should be supporting growth ... but Auckland house prices, which rose nearly 16% over the past year, suggest the RBNZ should tighten
- "The RBNZ cannot justify any OCR changes in 2015, but they should and will unleash macro-prudential tools to dampen a superheated Auckland housing market"
via Bloomberg
