It's a loose loose situation. Saw a stat that said 56% of kiwi wealth is held in property.
- Do nothing and inflation hammers low income earners and retirees
- Crank up OCR, everyone who has borrowed a lot to have a home gets hammered.
- Even worse if you fit into both camps.
The RBNZ doesn't have the ability to pick winners when it comes to this stuff, and it's not an excuse to move as slow as they in lifting the OCR - which is still deeply negative in real terms relative to inflation, and they're still underwriting cheap lending for banks with FLP at the same time as they're hiking the OCR.