Free Trial



FI Support Evaporates Amid Late Month End Selling


Remains Vulnerable


Late Risk Off Sees USDCAD Eye Cycle Highs


BLOCK, Late Puts

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
MNI (Sydney)

Reserve Bank of New Zealand Governor Adrian Orr on Tuesday said that NZ house prices are at unsustainable levels, but says the central bank only has a 'bit part' in controlling the issue.

In a speech on the property market, Orr said that using interest rates to target house price prices was not in the RBNZ mandate and "nor does it make sense." The central bank is expected to continue raising interest rates in the face of higher inflation, see: MNI STATE OF PLAY: RBNZ Hikes Rates, Signals More To Come

The RBNZ had limited ability to influence the housing market through macro-prudential measures such as loan to value rations, but the issue in NZ was largely one of housing supply. Orr said the RBNZ was consulting with commercial banks on additional "debt servicing ratio" tools which would impose a cap on a person's mortgage debt based on their income.

At a total value of NZD1.5 trillion, Orr said housing represented one half of the personal wealth of New Zealanders, and that current prices were unsustainable and "vulnerable to decline" and this created financial stability risks.

MNI Sydney Bureau | +61-405-322-399 |
MNI Sydney Bureau | +61-405-322-399 |

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.