Hopes to cushion the landing for over-heating Auckland and Christchurch property markets in an effort to avoid the pitfalls seen in the US.
"House prices in Auckland simply reflect to many trying to live in a concentrated area - known as supply and demand - and nothing Mr Wheeler or anyone else does will make a difference."
Deficit is being exaggerated by insurance flows stemming from the Canterbury rebuild and is not ringing alarm bells, Treasury secretary says.
In recent months, banks have been writing bigger mortgages as a ratio to the value of property.
Secretary Gabriel Makhlouf tells parliament's finance and expenditure committee its forecast average annual growth of 2.5% in the next five years is by and large intact.
Graeme Wheeler's first appearance before a parliamentary select committee descends into farce when the room is cleared to let politicians argue for more time with him.
"The sad thing about all this really is that for some years confidence in the Reserve Bank as an institution for action if required has been dwindling."
The airport has extracted $100 million in excessive profits with its most recent price increases for services, says its biggest customer, Air New Zealand.
"More evidence that the Commerce Commission needs a shakeup. It is very hard to understand why they flat out refused to meet with WIAL."
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