House prices complicate outlook as RBNZ holds
Central bank caught between strong NZ dollar and rising risks in the housing market
The Reserve Bank of New Zealand (RBNZ) faces the task of navigating between growing housing risks and a strong exchange rate, governor Graeme Wheeler said today (June 9) as he announced an unchanged policy rate.
The central bank left the rate at 2.25% but remains in easing mode, with one further cut built into current forecasts.
Inflation is being held down particularly by the tradeables sector, which accounts for around half of the weak price growth observed in recent months, Wheeler told a
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