New Zealand house prices to fall says the Reserve Bank Governor

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Monday, June 26, 2006

Reserve Bank of New Zealand Governor, Dr. Alan Bollard, says that the price of New Zealand houses is to fall after a meeting of central bankers at Switzerland.

Dr. Bollard told Bloomberg Television, "house prices will start falling by the end of the year, as higher interest rates start to bite."

He continues, "house price inflation has been a key driver of monetary policy, with prices rising by 69% between 2000 and 2005 according to OECD figures."

Dr. Bollard comments, alongside an OECD report, that New Zealand has the most vulnerable property market in the world.