A Reserve Bank of New Zealand spokesman says the Bank will respond to the proposal in due course.
This is in reference to the news earlier:
To 'respond constructively' and 'in due course' does not sound like the RBNZ is thrilled with the idea? Still, they will do as they are told. Central bank independence notwithstanding
- New Zealand is a small place
- Ardern has just been re-elected with an increased majority
- Ardern governs in her own right, without the need for a coalition - the first time this has happened in NZ since 1996
- Governor Orr, earlier this year, said he had no problem with monetising government debt (thus walking all over a previously sacred cow)
The news (linked above) sent the kiwi $ higher. It is another sign further easing from the RBNZ may be further away than we think if at all. Although macroprudential polices are more likely to be used to deal with house price growth than rate adjustments. The RBNZ are not unfamiliar with LVRs and the like.
Ardern has a friendly smile, but will crush Orr like a bug if the need arises. ...