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Grant Robertson wasted no time before diving into his new Racing portfolio. On Tuesday morning he headed to Trax Bar in Wellington to bet on the Melbourne Cup.
But it was the bets on Robertson’s other portfolio, Finance, that was at the forefront of most people’s minds.
Robertson said he will meet with Reserve Bank Governor Adrian Orr on Monday before Orr delivers the November Monetary Policy Statement on Wednesday.
Robertson revealed that he had moved on to this meeting after questions from reporters about loan-to-value restrictions.
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These are restrictions that prevent banks from making loans to too many people with low deposits. They had been in place since 2013, but rose in April in light of the Covid-19 pandemic.
But with investors once again entering the residential housing market (they accounted for 22.7 percent of new mortgages in September), it was speculated that the Reserve Bank might consider reinstalling LVRs to cool the housing market. living place.
Robertson’s comments on Monday led to some speculation that he might want to discuss measures to control asset price inflation with Orr.
“I will have more to say on monetary policy and other matters shortly. I intend to meet with the Governor of the Reserve Bank in the next few days, ”said Robertson.
The Reserve Bank sets monetary policy independently of politicians. Robertson said that he was still respecting this, which means that he will not give instructions to Orr.
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Instead, he said he wanted to make sure the government’s fiscal policy worked with the Reserve Bank’s monetary policy.
“We respect the independence of the Reserve Bank, but clearly the monetary and fiscal policy on Covid-19 continue to work together,” Robertson said.
Robertson further clarified those comments Tuesday by saying he moved the meeting forward because he had not been able to meet with Orr during the election campaign.
“It was more due to the fact that during the election period I am not able to have the close working relationship that I had in the Covid period with the governor and I just want that to work quickly,” Robertson said.
He added that he was still “aware” of concerns that monetary policy was putting pressure on asset prices.
“Of course I’m aware of the issues around asset prices and so forth, but it’s more about making sure we restart that close work.
“It’s about communication and how we understand each other’s plans and how they work together,” Robertson said.
“As you understand, the things that both the governor and I say can move the market, so we are very careful with what is said in public, but it is important that there is a clear and open dialogue between us about what we do. . “
