Slumping New Zealand home sales pose a “significant risk” to the economic outlook and may prompt the central bank to slow the pace of interest-rate increases even as house prices soar, the New Zealand Institute of Economic Research has warned.
Shamubeel Eaqub , principal economist at the New Zealand Institute of Economic Research Inc. in Wellington, comments on the outlook for the New Zealand economy and interest rates. He made the remarks to reporters and clients today in Wellington after releasing the institute’s quarterly forecasts.
Central Bank Governor Graeme Wheeler’s quest to cool New Zealand’s housing boom is being stymied by 50-year low mortgage rates and giveaways being offered by the nation’s banks as they chase new customers.
In a fake cave in a Wellington suburb, tourists pose by a statue of Gandalf, a hero of the “Lord of the Rings” films that boosted New Zealand’s economy by more than $580 million. The country needs the wizard’s magic more than ever when he returns next month.