The RBNZ publish its Financial..........>

NEW ZEALAND: The RBNZ publish its Financial Stability Report (FSR) tonight at

2100GMT. Analysts at ANZ expect a generally unchanged assessment. The financial

system is broadly sound, but high house prices and household debt remain

vulnerabilities.

- BNZ say it sounds as though the Reserve Bank will devote attention to global

risks and how the local banking system (should be able) to cope with any

turbulence from abroad. The markets have certainly been choppy since the

previous FSR, back in November. However, that's not to overlook financial

vulnerabilities of a home-grown nature, especially in housing.

- Westpac forecasts assume some further easing of the LVR restrictions over this

year. It's quite possible that the RBNZ will move as early as this month, even

if it's just an incremental move along the way.