Earlier on the RBNZ said it is reviewing housing loan capital adequacy requirements (it wants to raise capital requirements for higher loan-to-valuation loans). The RBNZ is concerned about rising house prices and this is seen as a tool to help slow that market, rather than the typical blunt instrument response of simply increasing the cash rate.
The better than expected trade result has been met with a jump in the NZD. Exports had a big jump over expectations, while imports came in a little below. More to come on these.
