Reserve Bank of New Zealand Deputy Governor/General Manager Financial Stability Hawkesby with the remarks:
- New Zealand financial system remains strong
- Prices have
stabilized in house markets over the last six months
System can cope with high interest rates
I’m not sure where Hawkesby is speaking today.
That last comment is interesting in light of what we heard from ANZ analysts on Friday:
- ANZ are expecting the RBNZ to hike its cash rate in February and in April, to 6%
- NZDUSD moves higher helped by ANZ call for higher rates
RBNZ Governor Orr also crossing the wires:
- it is concerning that the population is growing so rapidly at a time when residential construction is slowing
Huh. Orr is leaving unsaid that if that demand-supply imbalance forces house prices Up (its hard to see how it could not) the Bank would be forced into another inflation fight … higher rates, for longer.
Reserve Bank of New Zealand Deputy Governor/General Manager Financial Stability Hawkesby in the middle, Governor Orr on the right of the pic.
This article was written by Eamonn Sheridan at www.forexlive.com. Source