Wheeler hints OCR cut possible
He told the Auckland Institute of Directors today that he will likely have to use all the tools available to him to achieve price and financial stability in “extraordinary times”.
He said the economy was struggling with drought, the rebuild of Christchurch, a high dollar and house price inflation.
“Many of these challenges will be with us for some time. Meeting our price and financial stability objectives will require us to draw on the full array of policy instruments, including macro-prudential instruments, as appropriate.”
He said the exchange rate and the housing market presented difficult challenges for monetary policy when both the currency and asset prices appeared to be overvalued and investor demand was expected to remain strong.
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