'Stretched' assets, rising rates: central bank's housing warning

RBNZ says strong demand for housing has pushed house prices above their sustainable level, increasing the chance of a correction. (Image: Deposit Photos)

Jenny Ruth

Wed, 03 Nov 2021

Already-stretched asset prices, particularly of New Zealand houses, mean prices may fall as global interest rates rise, said Reserve Bank governor Adrian Orr."With the risk of global inflation heightened, already stretched asset prices are facing headwinds from rising global interest rates," Orr said on releasing the central bank's latest financial stability report."Global economic activity continues to expand, albeit with significant challenges in large part due to the ongoing covid-19 virus," Orr said.In NZ, economic a...

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