• Prudential tightening very close
• As housing goes nuts
• Wheeler talking the currency lower
• No sign of rate hikes soon
• But RBNZ’s hand will be forced
The Reserve Bank is in a complete bind. In short it is faced with choosing between allowing the housing market to overheat spectacularly, threatening widespread inflation and raising the risks to the banking sector of a future correction, or encouraging the NZD to head for the stars in turn undermining the rebalance that New Zealand so desperately needs and severely compromising our future potential growth rate.
Click here to read the full report: Economic Research
BNZ