RBNZ's Wheeler warns on housing, holds OCR at 2.5 percent as overvalued kiwi keeps lid on inflation

Wed, 30 Jan 2013

By Paul McBeth Jan. 31 (BusinessDesk) - Reserve Bank governor Graeme Wheeler singled out rising house prices as a threat to the country's financial stability and kept the official cash rate at 2.5 percent, as expected, saying the overvalued New Zealand dollar was holding consumer prices below the bank's target band. "The bank does not want to see financial stability or inflation risks accentuated by housing demand getting too far ahead of supply," Wheeler said in a statement. The bank is closely watching house price inflation and household c...

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