RBNZ Likely Looking at New Tools to Avoid Rate Rises, Key Says
(Bloomberg) -- New Zealand's central bank is probably investigating new tools to slow housing demand because it is unable to raise interest rates in a low-inflation environment, Prime Minister John Key says.
The Reserve Bank said last week it was seeking views on how to define property investment loans, adding to signs it may tighten rules in an attempt to cool surging house prices. Key said he hadn't been briefed on the issue by the RBNZ while a spokesman for the central bank declined to comment.
"It's clearly trying to ensure there's not a bubble emerging in the housing market," Key told reporters in Wellington Monday. "It's doing so in such a way that it's not having to lift interest rates."
Eurogroup's Dijsselbloem: Greece reform outline 'far from complete'
(Reuters) - A list of reforms proposed by Greece last week to help it win creditor support is "far from complete," the head of the Eurogroup said.
Speaking at an event in Amsterdam on Sunday, Jeroen Dijsselbloem, who is also Dutch finance minister, said the Greek proposal was "serious" but not enough.
Dijsselbloem, whose Eurogroup of euro zone finance ministers will discuss Greece at a meeting on Monday, said Athens had submitted six proposals, with more expected to come.
ECB Said to Begin Buying German Government Bonds in QE
(Bloomberg) -- The European Central Bank was said to start buying euro-area government bonds as it took the first step of its expanded quantitative-easing plan designed to boost price growth in the region.
Central banks from the region bought German bonds, said two traders in government debt, who asked not to be identified because the transactions are confidential. Sovereign securities across the region advanced. A spokesman for the ECB declined to comment on the purchases.
Bonds rallied. The yield on Germany's 10-year bunds fell four basis points, or 0.04 percentage point, to 0.35 percent at 8:54 a.m. London time, approaching the record-low 0.283 percent set on Feb. 26. Italy's 10-year yield dropped four basis points to 1.28 percent.