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Reserve Bank keeps restrictions on mortgage....>

RBNZ
RBNZ: Reserve Bank keeps restrictions on mortgage lending in place, noting the
low interest rate environment could prompt banks to lend more to borrowers with
small deposits; Governor says the Bank didn't come 'particularly close' to
loosening restrictions (Interest NZ)
- The Reserve Bank (RBNZ) has decided to leave mortgage lending restrictions as
they are, citing concerns low interest rates could prompt banks to lend more to
borrowers with small deposits. Governor Adrian Orr said loan-to-value ratio
(LVR) restrictions will stay at current levels as there remains a "risk that
prolonged low interest rates could lead to a resurgence in higher-risk lending".
The RBNZ also said, in its biannual Financial Stability Report released on
Wednesday, that "there are early signs that housing lending risk may be
increasing again". "House price growth has strengthened in recent months, even
with high price-to-income ratios, and it is unclear how long this strength will
persist."
- Link: https://tinyurl.com/svud97x
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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