As I was writing this, the Reserve Bank’s latest set of regulatory interventions and controls were announced. I haven’t yet read that document but from the press release I would make just three observations:
- The flip-flops continue. After easing the LVR restrictions for non-investors outside Auckland last year, they now plan to totally reverse that change. As a reminder, when these controls were first introduced three years ago, they were all supposed to be “temporary”. So, I suppose, were the exchange controls, introduced in 1938 and lifted in 1984,
- The consultation process is a joke. Not long ago, as part of their regulatory stocktake, the Bank indicated that it intended to put in place materially longer consultative periods for its proposed regulatory initiatives (typically six to ten weeks). But in today’s announcement they are allowing only three weeks for submissions on the new “proposals” to be made, and then plan to implement…
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Utopia, you are standing in it! 
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