Governor Graeme Wheeler has said as long as there is still an imbalance between demand and supply “there is a significant risk of further upward pressure on house prices”.
The Reserve Bank said it has probably done enough to return inflation to target as economic growth quickens.
The Reserve Bank of New Zealand has reduced the Official Cash Rate (OCR) by 25 basis points to 1.75%.
After several false dawns, New Zealand’s central bank may be finally arriving at the end of its easing cycle.
New Zealand inflation slowed less than economists forecast in the third quarter, prompting the local dollar to jump.
The Reserve Bank has said it still expects to cut interest rates to a fresh record low to revive inflation.
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