ANZ Look For Macroprudential Restrictions Later In '21

ANZ note that they "expect macroprudential restrictions will be introduced in Australia later this year. A soft touch approach from the regulator is likely in the first instance, followed by harder limits, most likely targeted at high debt-to-income loans. The strong rebound in Australia's housing market has raised the prospect of macroprudential tightening. The reinstatement of macroprudential controls in New Zealand has heightened speculation about the timing of this tightening. New Zealand's housing market, however, is running much hotter than Australia's. House prices, investor lending and housing credit are all outpacing Australia's. But Australia is catching up fast. We see upside risk to our forecast for a rise of close to 10% in Australian house prices this year, but signs of easing lending standards will be the trigger for the regulator rather than the extent of house price gains."