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This report presents the findings of a review of the Reserve Bank of New Zealand’s (RBNZ) macroprudential policy decision-making, its justifications, evidence and objectives. As part of the Building Better Homes, Towns and Cities Architecture of Decision-Making Special Research Area, the purpose of the report is to uncover the influence the RBNZ’s decisionmaking has on the housing market, with a particular focus on pressing housing concerns, such as affordability.

A macroprudential approach to financial regulation treats the financial system as a whole and seeks to mitigate risk at a systems-level. The development and spread of macroprudential policies worldwide has been notable since the 2007-2008 global financial crisis (GFC). A particular focus on these policies has been ensuring the shocks within the housing sector do not spill over and threaten economic and financial stability.