New Zealand proposes changes to central bank remit

Possible changes: Traffic travels past the Reserve Bank of New Zealand on The Terrace in Wellington. The bank says it will review the government’s request to amend its remit to rein in an overheating property market. — Bloomberg

WELLINGTON: New Zealand’s government has proposed adding house prices to the central bank’s remit to rein in an overheating property market, prompting investors to reduce bets on lower interest rates. The local dollar jumped.

Finance minister Grant Robertson said yesterday he has written to Reserve Bank governor Adrian Orr, asking him to consider amending the bank’s remit to include stability in house prices as a factor for monetary policy. He said the government wants to make the changes soon, “so I would request that you gave it your earliest possible consideration.”