note that also
the RBNZ also says its moratorium on banks paying dividends and redeeming bonds, put in place in April, will continue until at least March 31 next year "to support the stability of the financial system."
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note that also
the RBNZ also says its moratorium on banks paying dividends and redeeming bonds, put in place in April, will continue until at least March 31 next year "to support the stability of the financial system."
Orr talks about moving back to LVRs and a bit later signals that banks can get cheap money apparently for housing (not just business as some indicated)
He’s lost the plot .....needs a long holiday
he also said he is not too worried about the house prices as its more of a structural supply issue in nz .. has been for donkey yrs
Not sure this world rally will hold, everyone been having an end of Trump and Covid party. Once they wake up with their hangover there will still be Covid, and the world will still be in a hole, Trump or no Trump
US markets up again bumping the top of the range though , so a break thru the top could lead to some more good gains. mentioned yesterday nzd/usd might hit resistance at 69c after the rbnz news and it has indeed still up on the day and looking strong overall
I agree we are not out of the woods, Pfizer vaccine progress notwithstanding.
Reserve Bank of NZ is making sure interest rates remain low and is busy inflating the housing price bubble. Basically Orr is telling investors to fill their boots with mortgage debt. After all Labour says no general CGT under their watch - so chase those leveraged property capital gains; the Kiwi way. So what goes up, goes up for ever...(forget history?)
Are the Reserve Bank Board assessed for any conflict of interest?
Watch the tens of billions of dollars (in NZ) of maturing bank deposits flood into property & stocks, especially high yielding stocks in the next 12 months.
Already happening and will accelerate as savers get almost zero interest income shock.