New Zealand central bank says watching house price growth closely

[WELLINGTON] New Zealand's central bank governor said on Wednesday that the bank was pleased house prices were moderating but that it was watching very closely for signs they might race ahead again. "We're still concerned and we're watching it very closely," governor Graeme Wheeler told reporters in a media conference after the bank released its half-yearly financial stability report.

He reiterated that the bank was hoping to add debt-to-income restrictions to its macroprudential arsenal to combat any risks of a sharp downturn in house prices, but said that the bank would not use the tools unless it saw house prices rising quickly again.

REUTERS