House price consideration could be added to mandate – RBNZ’s Orr
New Zealand’s governor argues house prices are not the remit of monetary policy
New Zealand’s housing objectives should be taken into account when setting financial policy, but should not be an explicit target of monetary policy, according to the governor of the Reserve Bank of New Zealand.
In a letter to finance minister Grant Robertson, governor Adrian Orr said the government could add house price considerations to its forthcoming financial stability remit. This would allow the government to direct the RBNZ towards a specific government policy.
“[This] would justify
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