Latest Move by the Reserve Bank of Little Effect

new-zealand-first-party

Wed Jul 20 2016 12:00:00 GMT+1200 (New Zealand Standard Time)

Latest Move by the Reserve Bank of Little Effect

Wednesday, 20 July 2016, 1:04 pm
Press Release: New Zealand First Party

Rt Hon Winston Peters

New Zealand First Leader

Member of Parliament for Northland
19 JULY 2016

Latest Move by the Reserve Bank of Little Effect

The latest moves by the Reserve Bank requiring property investors to stump up with at least a 40 per cent deposit will have little effect in reining in the rampant house property market, says New Zealand First Leader and Northland MP Rt Hon Winston Peters.

“Every recent measure the Reserve Bank has taken has had minimal influence and this latest measure will be no different.

“There is a touching naivety, and a serious lack of being street wise, in the Reserve Bank’s approach. It ignores the two great drivers - high immigration and offshore buying. The high immigration and offshore buying are linked particularly to the rental market. The fact is offshore investors are not being provisioned by the New Zealand-based banks for a start.

“Given the way house financing is constructed from offshore, foreign investors will carry on as usual whilst New Zealand investors will simply have to stump up a greater deposit.

“Accordingly, for a short time longer the house price bubble will just get greater before the inevitable crash.

“New Zealanders have had enough of academic voodoo explanations that so patently ignore the obvious major drivers,” says Mr Peters.

ENDS

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