The Reserve Bank of New Zealand plans to provide advice to the government on the measures in late May, a few weeks after publishing its upcoming Financial Stability Report (on May 5).
- the RBNZ told interest.co.nz: “We will be providing advice on policy options for responding to the Government’s section 68B direction on housing-related matters late next month.
The response is to Finance Minister Grant Robertson’s mandate adjustment for the RBNZ back on February 25 requiring the Bank to have regard for the Government’s housing policy in the work it does to ensure the financial system is stable.
RBNZ macroprudential rules such as those discussed above make interest rate hikes less likely, at the margin. Not that there is much prospect of hikes any time soon.