Hard finding inflation tools beyond interest rates

The report has many ideas about how to control the property market, however it is unlikely any will see the light of day in the near future.

The Government's top financial agencies have struggled to find alternatives to raising interest rates that could be used to keep inflation in check.

In November the Reserve Bank and the Treasury commissioned a team of senior staff to look at alternative tools for controlling inflation in light of the prolonged housing market upswing.

In a report released to the public today they do see merit in the idea of making it easier to build more houses as demand rises.