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Economy Analysis

'Proper' for govt to instruct RBNZ on house price inflation: Grimes

Rebecca Howard
Thu, 19 Nov 2020

Rebecca Howard
Thu, 19 Nov 2020
Former Reserve Bank of New Zealand chairman Arthur Grimes says it would be "quite proper" for the government to issue instructions to the central bank about its concerns over rampant house price inflation.His comments join a growing clamour calling on the government to strong-arm the Reserve Bank into doing something about the overheated housing market.“In my view, rising house prices – which are clearly being caused by the (Reserve) bank’s actions – raise major financial stability concerns so should be viewed...

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