Reserve Bank gives Key the fingers on housing crisis

Written By: - Date published: 11:17 am, July 8th, 2016 - 14 comments
Categories: housing, national, useless - Tags: , , ,

Key is looking for someone to blame on the housing crisis – Prime Minister John Key says Reserve Bank needs to ‘get on with it’ on housing measures

Prime Minister John Key was critical of the Reserve Bank Deputy Governor’s speech on dealing with the housing shortage.

“I stand by what I said, I think they should get on with it,” Key said.

Unsurprisingly – Reserve Bank refuses to play housing ball with government

Given the nod by the Prime Minister John Key on Tuesday to crack down further on investors as soon as possible, some thought yesterday’s speech by the central bank’s deputy governor, Grant Spencer, would just fill in the blanks about what form the intervention would take.

Only the central bank did not play ball.

In The Herald Liam Dann asks – Did the Reserve Bank just give two fingers to the Prime Minister?

Did the Reserve Bank just give two fingers to the Prime Minister?

If John Key was trying to hurry the Bank to hit investors with tougher lending restrictions, he has been ignored.

With comments this week – that the Reserve Bank “should just get on with it” – John Key did manage to build plenty of hype around deputy governor Grant Spencer’s speech to New Zealand Institute of Valuers in Wellington tonight.

But the Bank, quite rightly, didn’t respond to political pressure.

In fact, in a sign of growing tension with Government, Spencer hit back suggesting it might want to take a look at its migration policy – which it cites as driving strong housing demand – and ongoing housing supply shortfalls.

What next, John?

14 comments on “Reserve Bank gives Key the fingers on housing crisis”

  1. Lanthanide 1

    Re-posting my comment from Open MIke #6 as it’s more relevant here:
    Simple thing the RBNZ could do to help control the investing side of the housing market – say that banks are only allowed to lend at their carded rates when signing interest-only loans for investors.

    There has been various suggestions that interest-only be banned outright, which seems like a punitive over-reaction that could have unforeseen consequences. But this would be a very easy policy for the banks to implement. It represents another tightening of the screws against investors that would help to even the playing field. Note I’m not suggesting this instead of other proposals, but in addition to.

    For example, at the moment the lowest 1 year rate from a mainstream bank is 4.25%, but it’s possible to get that discounted to 3.99% if you’re attractive enough to the bank.

  2. Save NZ 2

    +1 Reserve Bank!

  3. lprent 4

    I have been looking for a slightly bigger apartment for a year.

    >70 square metres rather than 51 m2.
    2 bedrooms instead of one.
    Same high ceilings I have now, which allow me to work at home.
    2 car parks same as now.
    Adequate power and comms == new

    There aren’t any except old ones in the wrong locations – the CBD or Parnell.

    All I can find in new ones are ones designed for rentals – 3 bedroom with two bathrooms and no storage designed for transients.

    Half the problem in Auckland is that the mix of housing being built is inadequate – from McMansions to new apartments. It is orientated to maximize profit for developers rather than making effective use of living spaces.

  4. Kevin 5

    Pity Key doesn’t show as much conviction for cracking down on corporate tax avoidance.

    • TC 5.1

      He doesnt give a toss, its all a sham with the usual blame shifting diversion tactic.

      The biggest improvement has been in his performances for the sheeple with the faux concern.

  5. Greg 6

    Its also trying to make out that the RB is independent from Key, when clearly it isnt.

  6. Justice T. McGovern 7

    What’s the matter, John? Are people not sucking up to you and agreeing with your BS the way they used to? Haha

  7. fisiani 8

    Imitation is the sincerest form of flattery. Labour copy National’s emergency housing plan.

  8. fisiani 9

    Imitation is the sincerest form of flattery. Labour copy National’s emergency housing plan.

    • Stuart Munro 9.1

      Just the place for a Snark! I have said it thrice:
      What I tell you three times is true.”

      Fisi – a day late and an instance short even on it’s best day.

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