Nick Goodall says ( about Monetary Policy ) : ”When investor LVR restrictions were adjusted in October 2016 (requiring a 40% deposit for investors) the rate of quarterly value growth reduced almost immediately, from 5.1% at the end of September 2016 to 1.2% at the end of March 2017 and 0.3% by September 2017. “This time around there are additional factors at play, including changes to interest deductibility for investors buying an established property and a reduction in demand as affordability constraints become more challenging. The aggregate effect of these changes is likely to result in a further slowdown in the pace of house price appreciation. “Further adding to the complexity, we are also now navigating a changing environment when it comes to the interest rate outlook. As the RBNZ forecast in their latest Monetary Policy Statement, the next move for the Official Cash Rate (OCR) is expected to be up, albeit in at least a years’ time, but this is likely to weigh on buyer attitudes with regards to taking on large sums of debt. Bank serviceability tests (at higher interest rates) do provide a form of cover for this however. “Given the volume and pace of recent change as well as an ever-evolving outlook, we now expect policy makers to await more information and data before intervening further. From the RBNZ’s perspective, debt-to-income (DTI) limits are the most likely tool to be considered next. For now, the RBNZ are unable to regulate the market using this tool, but they have provided analysis to the Finance Minister on their potential implementation. As we await the Minister’s response and public release of the RBNZ analysis, we already know that any introduction of DTI limits would have to wait until November at the earliest, to allow for consultation,”

foreignaffairs-nz Tuesday, June 1, 2021 9:34:00 AM EAT

Mr Bailey said ( about Monetary Policy ) : "In the Monetary Policy Report our forecast suggested that inflation... will rise to target and be above 2.5% this year. We then think it'll come back down. "

heart Tuesday, May 25, 2021 2:04:00 AM EAT

Mr Bailey said ( about Monetary Policy ) : "In the Monetary Policy Report our forecast suggested that inflation... will rise to target and be above 2.5% this year. We then think it'll come back down. "

skynews Tuesday, May 25, 2021 12:27:00 AM EAT

Andrew Bailey said ( about Monetary Policy ) : "The Monetary Policy Committee judges that these transitory developments should have few direct implications for inflation over the medium term,"

4-traders Monday, May 24, 2021 6:24:00 PM EAT

Michael Patra said ( about Monetary Policy ) : “Monetary policy has to remain supportive of the economy until the recovery is more sure footed and its sustainability assured,”

expressindia Friday, April 23, 2021 1:29:00 AM EAT

Nick Goodall says ( about Monetary Policy ) : ”When investor LVR restrictions were adjusted in October 2016 (requiring a 40% deposit for investors) the rate of quarterly value growth reduced almost immediately, from 5.1% at the end of September 2016 to 1.2% at the end of March 2017 and 0.3% by September 2017. “This time around there are additional factors at play, including changes to interest deductibility for investors buying an established property and a reduction in demand as affordability constraints become more challenging. The aggregate effect of these changes is likely to result in a further slowdown in the pace of house price appreciation. “Further adding to the complexity, we are also now navigating a changing environment when it comes to the interest rate outlook. As the RBNZ forecast in their latest Monetary Policy Statement, the next move for the Official Cash Rate (OCR) is expected to be up, albeit in at least a years’ time, but this is likely to weigh on buyer attitudes with regards to taking on large sums of debt. Bank serviceability tests (at higher interest rates) do provide a form of cover for this however. “Given the volume and pace of recent change as well as an ever-evolving outlook, we now expect policy makers to await more information and data before intervening further. From the RBNZ’s perspective, debt-to-income (DTI) limits are the most likely tool to be considered next. For now, the RBNZ are unable to regulate the market using this tool, but they have provided analysis to the Finance Minister on their potential implementation. As we await the Minister’s response and public release of the RBNZ analysis, we already know that any introduction of DTI limits would have to wait until November at the earliest, to allow for consultation,”

foreignaffairs-nz Tuesday, June 1, 2021 9:34:00 AM EAT

Mr Bailey said ( about Monetary Policy ) : "In the Monetary Policy Report our forecast suggested that inflation... will rise to target and be above 2.5% this year. We then think it'll come back down. "

heart Tuesday, May 25, 2021 2:04:00 AM EAT

Mr Bailey said ( about Monetary Policy ) : "In the Monetary Policy Report our forecast suggested that inflation... will rise to target and be above 2.5% this year. We then think it'll come back down. "

skynews Tuesday, May 25, 2021 12:27:00 AM EAT

Andrew Bailey said ( about Monetary Policy ) : "The Monetary Policy Committee judges that these transitory developments should have few direct implications for inflation over the medium term,"

4-traders Monday, May 24, 2021 6:24:00 PM EAT

Michael Patra said ( about Monetary Policy ) : “Monetary policy has to remain supportive of the economy until the recovery is more sure footed and its sustainability assured,”

expressindia Friday, April 23, 2021 1:29:00 AM EAT