Expert Commentary on New Zealand Housing Market and Reserve Bank Policy

Workman and Shamubeel Eaqub commented on the New Zealand economy, noting that the housing market, job seekers, and consumers may be affected by the Reserve Bank's efforts to control oil-fuelled inflation. The Reserve Bank is expected to raise the Official Cash Rate into next year, despite new data showing sharp downturns in house sales across most regions. Eaqub stated that house sales were down in every region compared to a year ago, except for Manawatu-Whanganui.

Eaqub expressed concern that the Reserve Bank might be overstating the recovery's strength and the inflationary pressures. He noted that the market was showing effects consistent with a 6.5 percent interest rate, even though the current rate was 5.5 percent. Both commented on the potential negative impacts on the country's overall economic health.