A Reserve Bank of New Zealand (RBNZ) spokesman said that the central bank will engage constructively on the government proposal to add a house price remit.
The RBNZ official responds to the earlier comments by Finance Minister Grant, citing that the government is seeking advice on whether to include stability in house prices as a factor in the RBNZ remit while formulating the monetary policy.
NZD/USD is off the highs but holds sizeable gains on the RBNZ response. The spot was last seen trading at 0.6970, up 0.74% on the day.
The kiwi jumped 50-pips and hit the highest levels in over two years at 0.6983, as the RBNZ remit change is seen to have pushed back further easing expectations.
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