New Zealand finance minister English says the Reserve Bank of New Zealand is making a case for special rules targeting property investors, as the central bank has little option to increase interest rates
Governor of the RBNZ Wheeler said last week that "much more needs to be done" to control the Auckland housing market
English said the government is working to increase housing supply, but that the RBNZ faced a "dilemma" as it probably could not raise interest rates
"They've got a bit of a dilemma here. Very low interest rates environment. There's no good reason to put interest rates up. They don't really have that tool to enable them to control the housing market"
English said he understood the RBNZ is consulting with the major banks about how macroprudential tools will work ... which he supports:
"We support the bank following its legislative mandate, paying attention to financial stability, taking the measures they believe are required"
More at the link, here: RBNZ should target property investors - NZ finmin English
