In particular, the lower are the net financing needs of the private sector at the bottom of the recession, the more likely it is that the economy can recover without bank credit.
Even then, there any many other supply-side factors that have a considerable influence house prices, outside the control of the central bank. ____________ 9  See RBNZ information release (11 March 2021). The minister of Finance’s Section 68B direction and accompanying correspondence. rbnz.govt.nz/research-and-  publications/information-releases/2021/ir-2021-01 10 Reserve Bank of New Zealand (2018) Loan-to-value restrictions and house prices, DP2018/05.