(MENAFN) New Zealand, the World Bank high-income economy, has been dealing with a soaring house prices lately, thus compromising the nation's financial stability, as recent reports showed.
Consequently, the government and the central bank had taken crucial actions to considerably reduce investor demand and to lower the economic risks of the city's overheated housing market.
Moreover, since the fourth quarter of 2014, annual Consumer Price Index inflation has been below the bank's target of 1 percent to 3 percent, due to the constant strength of New Zealand dollar.
Additionally, global prices for dairy, New Zealand's major export product, had dropped 65 percent from February 2014 to last month, dragging down the country's terms of trade.
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