The Reserve Bank has made the wrong decision keeping interest rates at 2.25 per cent according to Kim Campbell of the Employers and Manufacturers Association.

"It's a poor call because if you look carefully at it, the interest rates and the OCR has very little to do with housing prices in Auckland," Campbell said.

He discusses the bank's announcement with Devon Glass of Devon Funds Management in today's Economy Hub.

Glass disagreed with Campbell and said governor Graeme Wheeler was trying to safeguard against the housing crisis in Auckland.


"There's a real risk we're having a bubble form in housing that could affect financial security at some point, so I think the Reserve Bank is reluctant to pour more petrol on that fire."