House prices added to Reserve Bank remit
Finance Minister Grant Robertson announced that the RBNZ is now "required to consider the impact on housing" when making monetary and financial policy decisions.
Changes have been made to the central bank Monetary Policy Committee's remit, meaning it will need to consider sustainable house prices while working to its existing objectives, supporting maximum sustainable employment and keeping inflation around the 2% mark.
It comes amid growing pressure on the Reserve Bank, which has slashed the official cash rate to 0.25%, and introduced cheap financing programmes for lenders in the wake of the Covid crisis.
Loose monetary policy has helped NZ avoid a worst-case economic scenario, but the RBNZ has been blamed for the record surge in house prices.
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