New Zealand’s central bank has been asked to help slow a property boom in the country. The country’s Finance Minister Grant Robertson addressed the Reserve Bank of New Zealand to keep note of the housing stability.
In the letter to RBNZ Governor Adrian Orr, Robertson said, "I am concerned that the recent rapid escalation in house prices, and forecasts for this to continue, are affecting the government's ability to meet the economic objectives set out in the remit.”
This happens as the Kiwi dollar soared to $US 0.6985, the highest since mid-2018.
"I am also concerned about the potential that these price increases may present a financial stability risk to the economy, particularly when monetary policy returns to more normal settings."
There is ongoing pressure to restrain the booming property market, supported by the opposition party which is urging the government to "rein in" the central bank.
Moreover, the Reverse Bank of New Zealand has already invested NZ$28 billion into the banking system earlier in November, which could potentially lead to affect the housing market.
The market was also impacted by the coronavirus pandemic.
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