25 Feb 2021

Reserve Bank must now take house prices into account

From Midday Report, 12:11 pm on 25 February 2021

The Government has decreed the Reserve Bank will now have to take house prices into account when making its decisions.

The Finance Minister, Grant Robertson, suggested this course of action last year, and has today changed the bank's remit to ensure it, despite the bank's Governor, Adrian Orr, warning against the move.

Westpac's chief economist, Dominick Stephens, spoke to Māni Dunlop.