Kiwis should expect a hectic summer on the housing market with moves yesterday that could further lower interest rates.
The Reserve Bank has held the official cash rate (OCR) at a record low 0.25 per cent and revealed a new $28 billion Funding for Lending Programme (FLP) will begin next month. The programme essentially gives cheap money to banks in the expectation they will pass that on to businesses and households.
Reserve Bank Governor Adrian Orr says every single bank has also asked him to reinstate loan-to-value ratio (LVR) restrictions to help cool the housing market.
The bank says it will consult on the move before potentially reintroducing the measure in March.
Finance Minister Grant Robertson says the decision to re-impose LVR restrictions would be “sensible” .
But the Reserve Bank says it’s not to blame for rising house prices, saying its job is to keep the economy, employment and inflation stable.
It says the Government has a role to play when it comes to supply and tax and that banks need to take responsibility for their lending, too.
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Council votes for Shelly Bay sale
The controversial Shelly Bay development on Wellington's Miramar Peninsula has been given the green light.
The local council has voted 9-6 in favour of selling outstanding land to developers, despite strong opposition by mayor Andy Foster and Sir Peter Jackson.
It paves the way for 350 apartments, a hotel and a rest home on the former Defence Force site, however the project is still subject to legal challenges.
It’s the latest twist in a long-running saga that Stuff has detailed here .
Key National MPs demoted
Judith Collins has revealed her reshuffled National caucus , which sees two former party leaders demoted down the ranks.
Simon Bridges has lost the coveted foreign affairs portfolio, while Todd Muller has fallen down the rankings list to 19th place. Paul Goldsmith has also been dumped as National’s finance spokesperson after a disastrous election campaign.
Andrew Bayly and Michael Woodhouse are the big winners in the reshuffle, with both MPs shooting up the party rankings and splitting the finance portfolio duties between them.
1 NEWS political reporter Anna Whyte has rounded up all the winners and losers of the latest caucus reshuffle here .
Meanwhile, the Māori Party has requested an election recount in two electorates .
Party president Che Wilson says they have no dispute with the final numbers, but they’re claiming discrimination prevented many people from voting on the Māori roll at select election booths.
Vaccine's challenges revealed
The initial joy over Pfizer’s Covid-19 vaccine is already beginning to wear off as logistical issues over its distribution come to the fore.
The vaccine needs to be stored at extremely low temperatures, which makes getting doses into communities a difficult task.
New Zealand’s Ministry of Health says it’s well advanced with plans to support the vaccine’s potential rollout, with suitable bulk freezers due to arrive before the end of the year and consumables purchases underway.
Questions also remain as to how long immunity lasts following vaccination and trials are still ongoing.
And as plans are made for that potential vaccination, many countries continue to struggle with Covid outbreaks.
Italy has reported its highest daily death toll since April, while the UK has recorded more than 1000 deaths in a week for the first time since June. Hospitals in Sweden are also being pushed to the limit , while the US has amassed one million new confirmed cases in just the first 10 days of November .
Windies' exemptions revoked
The West Indies cricket team has had their training exemptions revoked by the Ministry of Health after they “repeatedly” broke managed isolation rules at their Christchurch facility.
Cricket West Indies chief executive Johnny Grave has supported the decision .
Director-General of Health Dr Ashley Bloomfield says it’s not within his purview to send the team back home, however he says officials “won’t hesitate” to make the team stay in isolation longer if they think there’s any risk to the public.
Other news of note this morning:
- An investigation by Australian police into a major online paedophile network has seen 14 men arrested, with links to alleged offenders in New Zealand .
- Dozens of Napier residents have spent the night in emergency accommodation after being unable to return to their flood-damaged homes.
- There’s further unrest in Hong Kong, with the resignation of all the city's pro-democracy lawmakers overnight.
- As US President Donald Trump continues to hold out hope of staying in the White House, President-elect Joe Biden says Trump’s refusal to concede defeat is “an embarrassment” .
- Fresh allegations have been made against former Christchurch Civic Creche worker Peter Ellis.
- New laws making it illegal to sell vaping products to those under 18 and to advertise vaping have come into effect.
- Kiwi filmmaker Taika Waititi has directed a new Christmas ad for soft drink giant Coca Cola.
- And Prime Minister Jacinda Ardern says plans for her wedding are finally underway.
And finally...
Netflix appears to be playing fast and loose with history in its new season of The Crown, with their moving of an iconic royal moment from New Zealand to Australia .
The fourth season of the hit show includes the now famous scene of a baby Prince William playing with a Buzzy Bee toy in 1983 – except the TV re-enactment takes place at a New South Wales farm instead of Government House in Auckland.
The move hasn’t gone down well with the group which owns the intellectual property for the Buzzy Bee. They’ve told 1 NEWS it’s “pretty disappointing” that Netflix has trampled on an “iconic Kiwi moment”.
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