Australian-based Citi Research banking analysts highlight 'messy' situation in New Zealand suggesting what appears to be a particularly aggressive RBNZ monetary policy approach has ignited the housing market

Australian-based Citi Research banking analysts highlight 'messy' situation in New Zealand suggesting what appears to be a particularly aggressive RBNZ monetary policy approach has ignited the housing market

When it comes to ownership of its home nation’s sovereign bonds, the Fed at present trails many of its central bank counterparts -- such as the Bank of Japan and even the Reserve Bank of New Zealand -- by a wide margin. Image and Link

by Audaxes | 18th Nov 20, 9:24am
"It has been a raucous cacophony of silence from them [Monetary Policy Committee members]. They should be more transparent,” Mortlock said.

Put them under the microscope of public scrutiny immediately.
Fostering asset bubbles is not a solution to our financial woes.

What really is QE? It's a story to get you to believe the future is inflationary so that you will act today on the belief and in doing so make the future inflationary.
The real toolkit is fin media writing 'money printing' over and over when QE isn't.Link

Always hear about how interest rates have nowhere to go but up, yet interest rates are always lower than when we hear heard it last time.
Vaccine won't change why yields are the way they are. And it has nothing to do w/QE (except how QE doesn't work). Link

Kiwis be seeing a cat on the road and say good sign real estate prices should rise

Aggressive RBNZ monetary approach

Really?

Was Orr responsible for initiating the $28 billion Covid-19 wage support program, followed by $50 billion QE, followed by $100 billion QE promise. LSAP program, FLP program

I don't think so, but do correct me

"RBNZ added too much stimulus and is sending the property market to the moon"

100% accurate headline

Yep. Printing and bailing out the liquidity crunch withn the banks in March was the root of this. The banks have then just sprayed the money around the market.

Aussies owners should have been forced to recapitalize via sending excessive profits back to NZ.

It is becoming clear to everybody, even overseas (with the exception of a minority of self-serving house speculators) that the extremely loose monetary policy of the RBNZ is reckless, unnecessary and dangerous, and that it should be partially but immediately reversed.
The refusal by Orr to admit it, and to reverse some of these policies for the sake of NZ and the solidity of its financial system, has the same relationship with reality and with inflated personal ego as Trump's refusal to admit that he lost the elections.

Surely, the issue here is that monetary policy is too blunt a tool for the job in hand - how can you provide economic stimulus using interest rates and QE without driving up speculation and the value of assets and share prices? A far more targeted approach is needed - direct stimulation using initiatives that are carefully chosen to boost growth without driving asset price inflation / speculation.