RBNZ comments on housing
- Repeats the line from yesterday's statement that house prices are above sustainable levels
- Key drivers of housing supply and demand have turned around
- Expect house price inflation to moderate significantly in the period ahead
- Underlying demand for housing declined significantly due to lower population growth since the pandemic
- House prices are assumed to eventually fall as momentum fades
These are a re-hash of comments in the rate decision and press conference yesterday. Orr emphasized that a wave of supply was about to come online.
More from Orr:
- It's highly likely RBNZ would have hiked rates without the latest delta lockdown
- Our view is to increasing the cash rate towards a more neutral level over the next 18 months
