The NZIER shadow board thinks the Reserve Bank should keep the official cash rate on hold at 2.5 per cent tomorrow.

The recent drop in the value of the New Zealand dollar against the US currency could have a caught a number of companies off-guard.

If house prices start rising faster, it can require lenders to reduce the proportion of the property value they are prepared to lend, writes David Mayes.

The New Zealand dollar fell to a nine month low as investors concerned about global growth moved to the relative safety of US Treasuries.

It could take three to five years to close the gap between housing supply and demand in Auckland, if left to supply measures alone, says Reserve Bank governor Graeme Wheeler.

The Reserve Bank will likely use its new macro prudential tools within the next six months to cool Auckland's overheated housing market, says the New Zealand Institute of Economic Research.

The New Zealand dollar surged to its highest in four and a half years against its Australian counterpart as New Zealand's rising interest rates and growth outlook increase the lure of the nation's currency.

Documents released by the Reserve Bank yesterday give scant support to the Prime Minister's suggestion that it might exempt first home buyers from any restriction on low-deposit home loans.

The number of New Zealand house sales slipped from a six-year high last month, but the national market is still being driven by Auckland and Christchurch.

Watching our Reserve Bank and news about interest rates from overseas this week, Bernard Hickey wondered how it will all end.