RBNZ mulls risks of housing, currency dilemma

Wed, 12 Jun 2013

By Paul McBeth June 13 (BusinessDesk) - The Reserve Bank is in a conundrum in dealing with an over-valued currency and property market where surging prices are starting to look like a bubble, either of which could force its hand to move interest rates. The June monetary policy statement weighs up the risks of either scenario escalating beyond the bank’s base case, which could lead to either a rate cut or a hike. Governor Graeme Wheeler has been at pains to point out the kiwi dollar is over-valued, which has kept headline inflation below th...

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