Comments from Fitch Ratings on New Zealand:

  • New Zealand macro-pru tools positive; policy, macro risks remain
  • A tightening of macro-prudential tools by the Reserve Bank of New Zealand will have a positive effect on bank credit
  • Expects the RBNZ measures to protect the viability of banks by limiting their exposures to higher-risk mortgages if house prices fall sharply
  • Slower and more moderate house-price growth would limit the negative impacts on the wider economy

more to come