The Reserve Bank of New Zealand would raise interest rates if there were signs that an overheated housing market in Auckland and Christchurch was spilling over into broader inflation pressures and consumer spending, says Deputy Governor Grant Spencer. The nation needs to avoid another housing boom, which “could potentially be more costly than the last, particularly at a time when …

The New Zealand dollar hit a fresh post-float high on a trade-weighted basis as the Bank of Japan’s moves to print massive amounts of money keeps the kiwi well supported, and as Reserve Bank deputy governor Grant Spencer gave the local housing market a serve. The trade-weighted index climbed as high as 77.77, the highest since the currency was floated …

The Treasury forecasts the summer drought will knock 0.7 of a percentage point off annual economic growth, more than twice the 0.2 percent to 0.3 percent forecast by the Reserve Bank of New Zealand in its latest monetary policy statement, on March 14. In commentary accompanying its monthly economic update, the Treasury says the spike in global dairy prices will …