Here’s one of the dumbest proposals that I have read in a while. The Auckland Council has released a Draft Plan proposing to change the existing urban growth boundary (called the “Metropolitan Urban Limit” or MUL) into an even tighter “Rural Urban Boundary” that would effectively ban development outside of the rural-urban line and limit
The Reserve Bank of New Zealand (RBNZ) last week lodged a fascinating submission with the New Zealand Productivity Commission’s Housing Affordability Inquiry which, given the strong similarities between the Australian and New Zealand housing markets (explained in these earlier articles), is highly relevant to Australia. The RBNZ submission is provided below. At only 10 pages
When it comes to recent banking/housing policy, our Kiwi cousins across the pond have it all over us Aussies. Back in April, I wrote about three policy actions being undertaken by the Reserve Bank of New Zealand (RBNZ) and the New Zealand Government aimed at reducing the economy’s exposure to the housing market and improving financial
The Reserve Bank of New Zealand (RBNZ) today released its biannual Financial Stability Report (FSR). For years, I have been a keen reader of the FSR as it provides an alternate view to the biannual Financial Stability Review released by the Reserve Bank of Australia in March and September. I also follow events closely in
Earlier this month, I wrote about two policy actions being undertaken by the Reserve Bank of New Zealand (RBNZ) and the New Zealand Government aimed indirectly at reducing the economy’s exposure to the housing market. These measures included: the Open Bank Resolution (OBR) Policy, which seeks to protect taxpayers from funding future bank bailouts; and
New Zealand has undertaken two policy actions lately aimed indirectly at reducing the economy’s exposure to the housing market. The first measure, called the Open Bank Resolution (OBR) Policy, has been initiated by the Reserve Bank of New Zealand (RBNZ) and seeks to protect taxpayers from funding future bank bailouts. The OBR is intended to
Following on from my recent posts on the New Zealand economy (here and here), yesterday’s testimony by Finance Minister Bill English to Parliament’s Finance and Expenditure Committee confirmed that New Zealand’s economy is facing a prolonged hangover after their borrowing binge in the 2000s. Here’s some of what Mr English had to say (via interest.co.nz): The recovery is going to continue to have
Following Wednesday’s post, New Zealand Deleverages: Taste of Things to Come, two important pieces of information have been released supporting my contention that the New Zealand economy is facing a prolonged period of anaemic growth as household’s deleverage following their borrowing binge in the 2000s. First, data was released on Thursday showing a ‘shock’ rise in unemployment to 6.8% from
Readers that have followed this blog for a while will know that I follow events in New Zealand closely, as I believe that events there can provide important insights and lessons for Australia. In many ways, New Zealand is a microcosm of Australia (minus the resources). We share essentially the same banking system (New Zealand’s largest banks are owned by Australia’s Big
