NZ government is considering adding house prices to the RBNZ mandate

Author: Eamonn Sheridan | Category: Central Banks

New Zealand Finance Minister Robertson says seeking advice on whether to include stability in house prices as a factor in RBNZ's remit while formulating monetary policy

  • says he has written to RBNZ governor Orr seeking advice on housing market
  • says expects to receive advice from RBNZ by end of the year
  • says not proposing any changes to RBNZ's mandate or independence
  • govt reviewing housing settings

Remit not mandate (re the headline). NZD getting a lift on this - the implication is the RBNZ is more likely to hike if this part of their job. Or at least not ease further. More likely though are macroprudential policies (such as tighter LVR restrictions and the like)

House prices in NZ are surging, as they are in many countries. A big political issue, and it looks like something the Ardern government might be doing something about?

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