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24 Feb 2015
RBNZ cannot justify any interest rate change in 2015 - NZIER
FXStreet (Bali) - The New Zealand Institute of Economic Research (NZIER) are being quoted via Bloomberg, sharing their view on the Reserve Bank of New Zealand's interest rate outlook for 2015, notign that the Central Bank cannot justify any interest rate change in 2015, adding that the RBNZ will use prudential tools to damp Auckland housing prices.
The NZIER report - key points
"There is no inflation in the economy for the RBNZ to control except in the Auckland housing market."
"Moderate growth, subdued inflation and global risks suggest monetary policy should be supporting growth, but Auckland house prices, which rose nearly 16% over the past year, suggest the RBNZ should tighten."
"The RBNZ cannot justify any OCR changes in 2015, but they should and will unleash macro-prudential tools to dampen a superheated Auckland housing market"
The NZIER report - key points
"There is no inflation in the economy for the RBNZ to control except in the Auckland housing market."
"Moderate growth, subdued inflation and global risks suggest monetary policy should be supporting growth, but Auckland house prices, which rose nearly 16% over the past year, suggest the RBNZ should tighten."
"The RBNZ cannot justify any OCR changes in 2015, but they should and will unleash macro-prudential tools to dampen a superheated Auckland housing market"