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How N Z Got Set Up For A H P C Through Lower I R

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Troubles could drive mortgage rates up despite RB cuts
24 March 2006
New Zealand's financial position could force interest rates up at the time that the Reserve Bank tries to lower them, National's finance spokesman, John Key, said today.
Economic data showing that gross domestic product (GDP) fell by 0.1 per cent in the three months to December, combined with the massive current account deficit and a falling dollar, could result in overseas investors turning their back on New Zealand, he said.
Over the last few years Reserve Bank governor Alan Bollard's attempts to squeeze up interest rates as the economy grew rapidly were frustrated by banks offering cheap home loans

The bubble gets filled with cheap loans and then the IR go up due to external fiscal policies and "POP". Does this sound familiar? It should because that is what has been fuelling the irrational exhuberance in UK house prices.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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