- ASB chief economist Nick Tuffley said annual house price growth in Auckland was hitting 15 per cent on some measures, not far off the near 20 per cent ascent in 2013.
- Tuffley said the Reserve Bank would be looking to introduce new tools alongside its existing limits on loan-to-value ratios (LVR) to try and cool the market.
- The central bank is already looking to crack down on property investors, requiring banks to hold more capital against any loans made to them.
- However, Tuffley said further steps might well be required.
More detail at the article, here (H/t and thanks to Tom in NZ. Apart from cheerleading for AUD/NZD parity Tom isn't a bad guy :-D ).
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At the margin, tougher lending rules will lower the potential for interest rate hikes from the RBNZ. Mind you, the RBNZ is very much on hold at present and for a good while to come.
