New Zealand new lending rules to be introduced

Author: Eamonn Sheridan | Category: Central Banks

News out of NZ earlier centred on the introduction of a new deposit guarantee scheme.

Almost slipping by unnoticed though was news that the NZ finance minister will be given new powers to decide on the types of loans the RBNZ can restrict for financial institutions. An example would be setting new loan to valuation ratios (of particur interest in NZ right now with the government moving to slow the house price surge) 

Info via Reuters.

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Something to be aware of, given there are always pors and cons of policy changes, is that moves to restrict price growth in  housing market risks weighing on the building sector, a key source of economic growth in New Zealand at present. (Ps. not saying this is good or bad, just that what is).  
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