Pattrick Smellie: When cutting rates doesn’t work123RF It is inevitable interest rates will fall further, Pattrick Smellie says. But given that's the case, the argument for continuing to cut interest rates and underpin a raging housing market is, at the very least, highly debatable. It's not the Reserve Bank's fault that monetary policy as we knew it is broken. However, the one thing that might really give residential property buyers pause – higher interest rates – is not going to happen any time soon. This move is both as much and as little as the Reserve Bank is able to do at present to contain rampant house price inflation.

Source: Stuff July 19, 2016 17:01 UTC