The Reserve Bank of New Zealand report is due Wednesday 27 November 2018 at 9am local time
- Which is Tuesday 27 November 2018 2000 GMT
The FSR is out every 6 months
Following the report RBNZ Governor Orr will address a press conference at 11am local time, 2200GMT
- Orr will then answer questions in a parliamentary committee at 1pm local, 0000GMT
Westpac preview:
- will include a review of the loan-to-value (LVR) restrictions on mortgage lending. Last November the RBNZ eased the restrictions slightly, and indicated that further easing was possible if house prices and credit growth remained in check.
- We have long been of the view that these criteria would be met. Government policies (such as extending the 'bright line' test and restricting foreign buyers) and changes in lending practices are now doing some of the prudential work that the LVR restrictions once did on their own.
- We would expect any changes to be incremental. The RBNZ has said that it will look to reduce the LVR limits to 'neutral' levels, rather than remove them altogether.
Also, this via ASB:
- The prime point of interest with the release of the RBNZ's Financial Stability Report will be whether the RBNZ's Loan-to-Value Ratio restrictions (LVRs) get relaxed or not. Key metrics the RBNZ focuses on all point to easing financial stability risks. But, taking a forward-looking viewpoint, there is some uncertainty about whether housing activity and debt levels will continue on their recent benign trends - implying little urgency to ease the lending restrictions now.
- We think a shift in LVRs at this meeting is a lineball call, and that the RBNZ will judge it can afford to wait a little longer. But we can readily argue for both relaxing the restrictions and for leaving them as they are for a little while longer. In the event there is an easing, targeting owner-occupier restrictions would be in keeping with the Government's broader housing policy objective of a tilt to owner-occupiers and away from property investors
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Earlier preview:
