Reserve Bank of New Zealand have announced proposed changes to housing investment restrictions
- RBNZ is proposing nationwide limits on housing investor loan to valuation ratios (LVRs)
- From September 1
- The limits were in place for investment in Auckland housing, RBNZ now wants to apply it to the rest of the country
These are proposals from the RBNZ, the consultation period finishes August 10
Comments from Governor Wheeler:
- Risk of house price correction increasing across NZ
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The market is of the opinion that a hurdle to further RBNZ rate cuts (they want to cut because of low inflation the mkt reckons) is the ongoing surge in house prices. Any moves to limit house price rises thus make it easier for the bank to cut rates - or so the reasoning goes.
Its enough to have sent the NZD lower, AUD along for the ride
