From the Reserve Bank of New Zealand Financial Stability Report:
- Recent drop in the New Zealand dollar has been helpful
- NZ dollar above sustainable level
- RBNZ sees risk dairy prices stay low for an extended period
- To create new asset class for loans to house investors
- To ease LVR limits on mortgages outside Auckland
- To keep LVR limits on Auckland mortgages
The RBNZ, as expected, is targeting property lending. This will leave scope for the RBNZ to adjust interest rates more in line with what they believe will help the economy
NZD dipped on the initial release but came screaming back
Awaiting news conference from Governor Wheeler now. There will be a live feed from the RBNZ, you can find it here
