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10 Nov 2014
RBNZ to remove LVR restrictions on Wednesday? - BNZ
FXStreet (Bali) - As Craig Ebert, Senior Economist at Bank of New Zealand, notes, there is a popular perception that Wed's Financial Stability Report (FSR) by the RBNZ may be used to announce the removal of its loan-to-value-ratio (LVR) restrictions.
Key Quotes
"Wednesday morning’s RBNZ Financial Stability Report (FSR) could well prove more interesting than the string of monthly data releases on show in New Zealand this week."
"There is a popular perception that the Bank will use this FSR to announce the removal of its loan-to-value-ratio (LVR) restrictions."
"We think this would be a bold move by the Bank, at least at this juncture. While house price inflation has been slowing, price levels are still pushing the boundaries relative to incomes, rents and other fundamentals."
"Meanwhile, anecdote from the market has been firming, post September’s election, fixed mortgage rates are retesting long-term lows and local banks, via booming deposits, are primed to the hilt for lending."
Key Quotes
"Wednesday morning’s RBNZ Financial Stability Report (FSR) could well prove more interesting than the string of monthly data releases on show in New Zealand this week."
"There is a popular perception that the Bank will use this FSR to announce the removal of its loan-to-value-ratio (LVR) restrictions."
"We think this would be a bold move by the Bank, at least at this juncture. While house price inflation has been slowing, price levels are still pushing the boundaries relative to incomes, rents and other fundamentals."
"Meanwhile, anecdote from the market has been firming, post September’s election, fixed mortgage rates are retesting long-term lows and local banks, via booming deposits, are primed to the hilt for lending."