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Wheeler warns on housing
It could take three to five years to close the gap between housing supply and demand in Auckland, if left to supply measures alone, says Reserve Bank governor Graeme Wheeler.
It could take three to five years to close the gap between housing supply and demand in Auckland, if left to supply measures alone, says Reserve Bank governor Graeme Wheeler.
Economists say the Reserve Bank's intervention in the foreign exchange market last month was too small to make much difference to the exchange rate.
The Reserve Bank Governor Graeme Wheeler said the central bank had intervened in the currency market to take on the high New Zealand dollar in recent months and was prepared to "scale up" its activities if necessary.
The Reserve Bank will likely use its new macro prudential tools within the next six months to cool Auckland's overheated housing market, says the New Zealand Institute of Economic Research.
Documents released by the Reserve Bank yesterday give scant support to the Prime Minister's suggestion that it might exempt first home buyers from any restriction on low-deposit home loans.
New Zealand housing is already overvalued by about 25 per cent and if it continues to rise may force the Reserve Bank to hike interest rates, according to the IMF.
The number of New Zealand house sales slipped from a six-year high last month, but the national market is still being driven by Auckland and Christchurch.
Watching our Reserve Bank and news about interest rates from overseas this week, Bernard Hickey wondered how it will all end.