RBNZ admits policy response to housing bubble was 'too slow'

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Monetary policy may have been "too slow" to tighten in the early stages of the formation of a housing bubble in New Zealand, the Reserve Bank of New Zealand (RBNZ) said on Monday.

In a report submitted to New Zealand's Productivity Commission Inquiry on Housing Affordability, the central bank said: "If interest rates are set too low for too long, that will affect demand for housing and house prices. With hindsight, we may have been too slow to tighten monetary policy against a backdrop of a rela

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