Additionally, RBNZ’s low interest-rate policy runs counter to its efforts to stem a potential housing bubble. In fact, RBNZ cited a housing bubble one of the reasons behind last year’s rate hikes.
“Policy makers are aware of the risk that low interest rates could exacerbate ‘the already extensive housing pressures in Auckland,’ where house prices are rising at an annual pace of around 17 percent,” according to Bloomberg.
iShares MSCI New Zealand Capped ETF
