LVR is proving effective.

But to sting the banks, the RBNZ needs also to act on RAR - reserve asset ratio. Makes it more attractive to lend to businesses rather than houses.

Meanwhile, I will go on record by saying we do not have a housing bubble - what we have is horrendous under supply and strong demand.

What we also have is price inflation by councils who are increasing their charges without restraint - that is the single biggest problem.