The median house price is about 4.5 times income, some 20% higher than the average of the past 30 years.

MBIE was meant to be business-facing The reality is that few government agencies have ever been more bureaucrat- or Beehive-facing

The report says a downturn in China could have potentially "substantial" negative effects on the wider economy.

Of New Zealand's total potential lending, so far only $320 million has been drawn down.

The global lending agency sees New Zealand's current account deficit rising to 7.1% of gross domestic product and net external liabilities to 84.8% of GDP by 2016. 

The kiwi pared offshore trading gains at the open of local trading as investors digested news the IMF will make a massive commitment to protect the world economy against Europe’s debt crisis.