Originally Posted by
Bjauck
So now the Reserve Bank should be desperately trying to raise the OCR to bring down CPI inflation, despite the effect on house values? However all those years of low interest rates - and high new mortgage to household income ratios - has meant the RBNZ have helped NZers channel their borrowings and wealth into hyper-inflated housing. It is a bubble, of the government's and RBNZ's making, that the RBNZ does not want to pop. So I guess now they won't be so desperate to bring the CPI inflation rate down?