Early Edition with Kate Hawkesby

So the OCR decision was largely as expected yesterday, but what the Reserve Bank made very clear is where they think growth will come from. As we’ve spoken about on the show lately, house prices aren’t running away here like in Australia, bar Queenstown. In previous recoveries, the wealth effect kicks in and people go shopping when their house prices go up. But this time the bank says prices will stay flat, then pick up again later this year, but only at the rate of income growth.  In other words, the opposite of what we’re used over the past few decades.  Usually, as anyone who’s tried to buy a house will know, the price of a three-beddy in Auckland grows quicker than your salary. That’s all changed now because we have more supply, at least according to the bank. So without the tickle up, where does economic growth come from? Anna Breman answered that question specifically yesterday and was pretty clear: agricultural exports, tourism, and more recently, some signs that manufacturing is picking