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12-11-2020, 11:36 AM
#8641
Originally Posted by macduffy
Blame the mandate given to the RBNZ. It doesn't include anything about house prices or affordability.
But they have always voiced concerns about these areas in the guise of stability which is part of their mandate. Stability can be a social mandate as well as a financial one although prolly not expressed that way in the legislation.
House prices should be included in inflation , its crazy how CPI doesnt do this. They use rent which distorts the picture when there is so much QE.
For clarity, nothing I say is advice....
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12-11-2020, 11:43 AM
#8642
Originally Posted by macduffy
Blame the mandate given to the RBNZ. It doesn't include anything about house prices or affordability.
True. However from its website it expressly says: "The Bank also aims to keep employment near its maximum sustainable level and promotes a sound and efficient financial system." The Bank is tasked with maintaining price stability.
It is arguable that if it does not ensure that lending is immediately channelled into business sustaining employment as opposed to mortgage lending further inflating the price of land, then it is failing.
The RBNZ has recognised that the housing market has supply constraints. Consequently encouraging banks to lend at low interest rates without immediately restricting the amount they can lend via residential lending, especially to investors, is encouraging further land price inflation (and not price stability) and not encouraging investment to help support employment during the covid recession, which is an expressed aim for the RBNZ.
Also it is arguable that allowing runaway property inflation to continue during the covid recession, the soundness and efficiency will be increasingly tested when interest rates can no longer drop further.
https://www.rbnz.govt.nz/about-us/what-we-do
Last edited by Bjauck; 12-11-2020 at 11:46 AM.
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12-11-2020, 11:43 AM
#8643
Originally Posted by peat
But they have always voiced concerns about these areas in the guise of stability which is part of their mandate. Stability can be a social mandate as well as a financial one although prolly not expressed that way in the legislation.
House prices should be included in inflation , its crazy how CPI doesnt do this. They use rent which distorts the picture when there is so much QE.
This was a link macduffy gave me, it breaks down the CPI components. House prices only a small part of CPI.
https://www.interest.co.nz/news/9157...umer-inflation
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12-11-2020, 11:49 AM
#8644
Originally Posted by Aaron
House prices are considered to be of a capital nature - rental is not.
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12-11-2020, 11:53 AM
#8645
Originally Posted by peat
But they have always voiced concerns about these areas in the guise of stability which is part of their mandate. Stability can be a social mandate as well as a financial one although prolly not expressed that way in the legislation.
House prices should be included in inflation , its crazy how CPI doesnt do this. They use rent which distorts the picture when there is so much QE.
I think home ownership costs are given a weighting, however I am not sure what weighting is given to the cost of land.
http://infoshare.stats.govt.nz/brows...aspx#gsc.tab=0
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12-11-2020, 04:30 PM
#8646
Member
Level 1.5 / 2 coming for Auckland?
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12-11-2020, 04:47 PM
#8647
Originally Posted by DDog
Level 1.5 / 2 coming for Auckland?
Depending on whether they can successfully contract trace the individual in question, along with the rest of the people living in the apartment complex I presume, we may avoid an increase in levels, however I'm certain it'll happen again before too long.
The authorities will need to very quickly put some additional procedures in place surrounding building evacuations to contain spread. If that is the cause, and it's looking likely, it's an appalling lapse.
Every cycle of alert level we go through will have an increasingly large effect on the economy.
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13-11-2020, 06:32 AM
#8648
Originally Posted by Zaphod
Depending on whether they can successfully contract trace the individual in question, along with the rest of the people living in the apartment complex I presume, we may avoid an increase in levels, however I'm certain it'll happen again before too long.
The authorities will need to very quickly put some additional procedures in place surrounding building evacuations to contain spread. If that is the cause, and it's looking likely, it's an appalling lapse.
Every cycle of alert level we go through will have an increasingly large effect on the economy.
Simple - do what is the right thing for the greater good which is to lockdown said apartments as a starting point until such time as all occupants are have tested negative and are cleared.
If the government can lock down a whole country with huge costs, they can jolly well lock down selected places.
Last edited by Balance; 13-11-2020 at 06:58 AM.
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13-11-2020, 08:02 AM
#8649
just got a email saying the pb tech black friday sale ( instore only ) is postponed a further update will be provided after 1 pm govt announcement today
one step ahead of the herd
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13-11-2020, 09:50 AM
#8650
note how the US was very subdued for a couple of days following the identified shooting star and is now beginning to confirm.
SP500 Shooting Star 13-11-2020.jpg
For clarity, nothing I say is advice....
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