RESERVE BANK GETS SENT A DISAPPROVING EYEBROW

In the BNZ-REINZ Residential Market Survey out January 2014, the authors said, “the Reserve Bank’s credit control limits are working to reduce New Zealand’s home ownership rate”.  
This is the sort of remark that can be telling about a bank’s attitude to what’s going on in the market. It’s a pretty big assertion to say the Reserve Bank intends that. And further, it seems to take little account of other forces at play, namely that wage growth is not keeping up with house price and/or household commodity growth, and consumer savings growth .

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