Perhaps the Federal Reserve has something to learn from the central bank of New Zealand about how to manage a mortgage market. Unlike the Fed, which has been sharply criticized for having failed to keep the U.S. housing bubble from expanding, the Reserve Bank of New Zealand is sounding the alarm over rising housing prices and imposing limits on mortgages.
Australia’s bond yields climbed, extending the steepest rise this quarter among developed markets, on signs of economic growth in China and the U.S. New Zealand’s dollar gained on the outlook for milk production.
Moody’s Investors Service discussed stripping New Zealand of its sole remaining top credit rating amid concern the nation’s current-account deficit is exacerbating its vulnerability to external shocks.
New Zealand is poised to raise more than NZ$2 billion ($1.7 billion) in the initial public offering of Meridian Energy Ltd., bolstered by demand from individual investors, said two people with knowledge of the matter.