“ACT led this debate, followed by the National Party and now finally Labour is on board.
“And while today’s move is pleasing, we accept the Governor doesn’t have an easy task.
“He said as much in his back and forth correspondence with the Finance Minister in recent months, noting a direction
like today’s ‘could make monetary policy less effective and impact financial market efficiency.’
“ACT says much of that actually depends on the performance of the Government, in particular its ability to vastly
improve the supply of new houses.
“That is really the only way to have significant impact on house price inflation, which just this week Core Logic
and the NZ Initiative have highlighted is at record levels.
“Unfortunately the Finance Minister’s head-space is still one of dampening demand, as evidenced by his direction to the
“It's clear that after three years of not doing very much at all Grant Robertson is trying to make this the Reserve
“He’s going to find it’s far from that simple and will have to come up with some pretty startling supply-side solutions
in the coming weeks if his Government is going to have any credibility on housing whatsoever.”