So the supposedly politically independent Reserve Bank has clamped down on lending to investors in the housing market “after [says the Herald] Prime Minister John Key expressed frustration about the Reserve Bank's response to rising house prices, saying that it should not need any more time to investigate stricter rules for property investors and should ‘just get on with it’.”
This is allegedly to fix rampant house-price inflation caused by these out-of-control property investors flooding the market. The bastards.
And yet, over the last two years, as house prices climbed by arund 8 to 10 percent per year and the total paper value of NZ housing stock rose from 3.2 time GDP (in 2014) to over four times GDP (as reported just this week), the Reserve Bank’s own figures shows the percentage of property investors has … remained almost exactly the same:
Graph from the Reserve Bank Deputy Governor’s speech on 7 July this year
So someone’s telling fibs here.
And not just about the political independence of the Bank.