In particular, in 2013 our official interest rate was still near a record low level at the time, as consumer price inflation pressures were weak in the aftermath of the Global Financial Crisis (GFC). However, with easy monetary conditions, house prices rose sharply, especially in our largest city, Auckland (Figure 1). In this period, house prices in Auckland reached nine times the average income.
It is indeed essential that the central bank community makes further progress on this important issue. Let me briefly recall how we arrived at this point.