Video / George HeardHousing investment is no longer the "one-sided bet that people talk about" according to Reserve Bank Governor Adrian Orr. "The Reserve Bank does not target house prices, I truly wish people could understand that," Orr said. "At the same time, higher interest rates mean they are less affordable because you have to pay higher interest rates - there is no magical side to monetary policy," Orr said. The Bank's monetary policy statement, released on Wednesday, forecast house prices would eventually begin falling towards the end of next year. Orr said it was obvious that house prices were very unsustainable and it would take eight years of frozen house price growth for house prices to get back down to normal debt-to-income levels.

Source: New Zealand Herald August 18, 2021 23:48 UTC