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NZ Fin Min: RBNZ takes financial stability seriously - will use lending controls if needed

New Zealand Finance Minister Bill English on the RBNZ and Auckland housing prices

  • Has given his strongest indication yet that the Reserve Bank is considering a third round of tighter Loan to Value Ratio (LVR) controls
  • In response to another resurgence in the Auckland housing market
  • Could announce them as soon as tomorrow.

    English was asked on the eve of the Reserve

  • "It's up to the bank. There's still a bit of uncertainty about just what the dynamics of the Auckland market are. The bank has signaled pretty clearly that it takes the issue quite seriously and they've got a range of tools and they're likely to want to use them"

via interest.co.nz

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At the margin, the RBNZ dealing with prices in this way wnhances the prospects for further interest rate cuts, and is a bearish input for the NZD

(NZD lower:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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