Asset price inflation has been a concern – Joyce

Asset price inflation has been a concern; Global adjustments will need careful management as interest rates increase, Finance Minister Joyce says

28th Apr 17, 5:02am by Alex Tarrant

Asset price inflation in recent years has been a concern, although pressures do appear to be easing, Finance Minister Steven Joyce says.

There will be a challenge globally to ensure that asset price adjustments are managed at a reasonably steady rate, he added. “Because obviously if it didn’t it would be a problem.”

Joyce made the comment while speaking to media in Wellington after a pre-Budget speech Thursday in which he revealed a new government net debt target of 10-15% of GDP by 2025.

Asked whether the new goal was in part because he wasn’t expecting the Government’s low cost of borrowing to remain where it was, Joyce said he “wouldn’t expect interest rates to stay where they are for the next five or six years.”

“I certainly wouldn’t be betting that,” he said. “To me, a lot of the things that have kept interest rates really low for a long time are probably starting to get to the end of their run.”

Asked whether that was just as well, due to recent asset price rises, Joyce said: “I think asset price inflation has been a concern. But I think we’re starting to return to more normal levels of activity, which will probably adjust asset prices over time."

“The challenge for the world is to make sure that, as much as possible, that happens on a reasonably steady path.”

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15 Comments

by J.C. | 28th Apr 17, 7:30am 1493321419

Well there was a minute you're never going to get back from Steven Joyce. A few utterings of...nothing.

by childofthesun | 28th Apr 17, 7:37am 1493321830

Exactly J.C. What's going on interest.co.nz? An entire article dedicated to the dildo abuse victim's latest words of wisdom?

by two otherguys | 28th Apr 17, 5:41pm 1493358087

Victim?

When I saw the news clip I distinctly thought he was the abuser - head-butting the dildo

The Liverpool kiss isn't it?

by Kakapo | 28th Apr 17, 7:47am 1493322433

No, shit, Sherlock. Now hold still and catch this dildo with your face.

by sharetrader | 28th Apr 17, 7:49am 1493322568

he really does an uninspiring job when talks, his drone is so bland that I don't take in much of what he says even though I may agree. for someone that started in media you would think he would do better.
he sounds like someone doing the midnight to 4am shift, trying to get people back to sleep

by zorba - old | 28th Apr 17, 4:50pm 1493355012

Yeah, watch him in Parliament sometime. Gerry sits next to him and falls asleep every time! LOL.

by Peri | 28th Apr 17, 7:49am 1493322587

It is a pity his government was not concerned about the rise in asset prices in NZ, as its failure to do so has made its task keep them on a "reasonably steady path" very difficult: - unless of course his solution is to further increase the tax and credit subsidies to asset holders.

by sharetrader | 28th Apr 17, 8:02am 1493323324

there is already a whisper that the accommodation supplement will be increased, and what will happen rents will go up as the ability to pay more is there which in turn should help landlords service loans in an increasing interest rate era
who are the government looking after here ? subsidies only distort pricing

by donbond | 28th Apr 17, 8:11am 1493323867

Election year

by two otherguys | 28th Apr 17, 5:43pm 1493358198

Yes indeed - but that wont be his problem come next year

by Houses Overpriced | 28th Apr 17, 7:55am 1493322914

The two most boring people in the world trying to save their party

by donbond | 28th Apr 17, 8:11am 1493323918

Election year bribery to come.

Take it but vote for change

by bigblue | 28th Apr 17, 6:45pm 1493361904

Steven Joyce has a BSc in Zoology - looking at his history you really have to wonder how is he now the finance minister?

https://en.m.wikipedia.org/wiki/Steven_Joyce#Early_life

by Alter Ego | 28th Apr 17, 7:02pm 1493362922

Sounds like he should not be behind the wheel of anything...but what do I know...perhaps he has changed for the bettor...

Zoology was not a good bet...Rhino has almost gone and so has Elephants...must be the ones buying up the Ivory Coast and the Horny people of a certain Nation...who shall be nameless and blameless.

by apizap | 28th Apr 17, 8:42pm 1493368947

"Asset price inflation in recent years has been a concern...". I think something must have been left out of the translation, because HE and his party have been the main promulgators of the devil he talks about. A whole generation of young Kiwis have now given up hope of owning their own home. Destined to be tenants in their own land! But don't worry, the world's rich & famous have had a field day buying up high country stations, etc. And those who can sell a 'shoebox' in Shanghai to get a palace in Beachlands.... they've done OK. For 9 long years National has been asleep at the wheel. They've had every opportunity to not only address this issue but to prevent it happening in the first place. They are moribund, and I hope every one of them ends up on a Housing NZ waiting list!