(Bloomberg) -- New Zealand's dollar fell after central bank Governor Alan Bollard said he may introduce new rules to curb bank lending, stifling demand for housing and diminishing the need for higher interest rates.
The local dollar, known as the kiwi, gained 18 percent in the past twelve months, as borrowing costs have been lifted twice to a record 7.75 percent. Bollard said he may tighten capital requirement rules for banks to stifle lending which is stoking a housing boom and adding to inflation, necessitating increases in the official cash rate.
Read more at Bloomberg Currencies News
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