RBNZ’s Orr: Unsustainable level of house prices poses monetary, financial stability challenges

Ross J Burland FXStreet

The Reserve Bank of New Zealand's governor, Adrian Orr, has just stated that the unsustainable level of house prices poses monetary, financial stability challenges.

Key notes

House prices and housing affordability are affected by both supply and demand factors.

House prices have become more unsustainable over the past 12 months.

Well advanced in work to commence consulting on additional ‘debt servicing ratio’ tools.

Expect to see an easing in house prices over the medium term.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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