The government's long-awaited rates cap will be a variable target band, and would be enforced by a new regulator.
Likely starting with minimum increases of two percent and a maximum of four percent, the cap would take effect from 1 January 2027.
It was not clear from the initial written statement how often the target might change, or exactly how it would be calculated, only that this could include "indicators like inflation at the lower end and GDP growth at the higher end".
Announcing the move at the weekly post-Cabinet briefing, Local Government Minister Simon Watts soon clarified the 2 percent minimum reflected the midpoint of the Reserve Bank's inflation target, while the 4 percent maximum reflected
Continue Reading on RNZ
This preview shows approximately 15% of the article. Read the full story on the publisher's website to support quality journalism.