NZ Govt Considers Making House Prices Part Of RBNZ Mandate

The NZ Government is considering adding house prices to RBNZ mandate.

New Zealand Finance Minister Robertson says seeking advice on whether to include stability in house prices as a factor in RBNZ's remit while formulating monetary policy

If this is the case, and the RBNZ will have to factor how its monetary policy decisions will affect house prices, i.e. to not inflate prices further. This will make it even less likely that they would go negative next year, thus driving the NZDUSD to break out of the range into levels not seen in 2 and a half years.

Current indicative levels are:

NZDUSD 0.6970

NZDAUD 0.9530

NZDEUR 0.6080

NZDGBP 0.5882

NZDJPY 72.85

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