Much of Parliament and the Beehive were focused yesterday on the Auditor General's report on Murray McCully and the Saudi Sheep deal. It found no evidence of corruption, but criticised the "significant shortcomings" in the deal and a lack of transparency, which it said the public was right to be concerned about and had yet to be resolved.
The role of rental property investors was firmly in the cross-hairs of the Reserve Bank when it targeted them with its second round of Loan to Value Ratio rules last November, but it only slowed them down for a few months and they are now back with vengeance. They are set to again be the target of debt to income multiple limits that the Reserve Bank is now considering.
Record high net migration and surprisingly low inflation have taken their toll in an unexpected area -- removing the fiscal headroom for a big pre-election tax cut.
The ghost of John Maynard Keynes' famous quote, 'When the facts change, I change my mind. What do you do, sir?', was alive and well yesterday in both the Beehive and the Reserve Bank.
Hello all after a frantic lockup-free morning where the Reserve Bank first hinted at new Macro-Prudential measures in its Financial Stability Report (FSR) and then outright said in the news conference that it was actively investigating a new limit on Debt-To-Income multiples.