Reserve Bank governor Graeme Wheeler says raising interest rates as a short-term monetary policy response to Auckland's overheated housing market is "pretty negligible".

New Zealand's banking system remains in good health, but heavily indebted dairy sector and heated property market are posing increasing risks to lenders.

Million dollar-plus properties are selling at the rate of 25 a day in NZ - 22 a day in Auckland - and at nearly double the frequency of the previous year.

The Auckland housing market slowed last month following the introduction of new restrictions, according to the latest industry figures.

"Massive" home valuation rises across the Auckland region pushed the average up 24.4 per cent annually to a new high of $918,153.

Average asking prices for Auckland homes have dropped more than $18,000 in just a month, says realestate.co.nz.

Official cash rate to remain at 2.75 per cent but bank worried about effects of China slowdown.

The Treasury is warning that economic growth this year might drop below 2 per cent. That would mean virtually zero in per capita terms, writes Brian Fallow.

Consumer prices rose at a slower pace in the September quarter as more expensive vegetables and local body rates offset cheaper vehicle relicensing fee

But Reserve Bank governor is wary of stoking housing market.

Inflation probably slowed in the third quarter due in large part to a big ACC levy drop.

Business confidence extended its decline in the third quarter, plunging to its lowest level in more than four years.

NZ house values rose at their fastest annual pace in more than eight years, as demand for Auckland housing overflowed to nearby regions.

Residential building consents fell 4.9pc in August as the Canterbury rebuild shifts its focus toward commercial work.

The kiwi fell to 63.06 US cents at 5pm in Wellington from 63.32 cents at 8.30am, and down from 63.99 cents yesterday.