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  • rmacculloch

The RBNZ corrects itself

A couple of days ago Down to Earth Kiwi queried the meaning of this formal public statement by the Reserve Bank on the topic of the run-away housing market: "Resilient household incomes, bolstered by wage subsidies .. and supply constraints including land use restrictions and barriers to the supply of infrastructure have also contributed to the recent surge in demand".


Seems like they were saying less supply leads to more demand. We queried it direct with the boss. So today the Bank changed it to read: "Resilient household incomes, bolstered by wage subsidies .. & supply constraints including land use restrictions & barriers to the supply of infrastructure have also contributed to the recent surge in prices".


Spot the difference.


Sources:

https://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Factsheets%20and%20Guides/guide-houseprice-sustainability.pdf?la=en&revision=5f763081-a4bd-4d54-93ab-edc0e1f43828