Tuesday 10th May 2016
|Text too small?|
Finance Minister Bill English hinted that the Reserve Bank may announce further restrictions to curb the country's housing market as part of its Financial Stability Report tomorrow, according to news reports.
English was asked by reporters if the Reserve Bank should bring in further loan-to-value ratio controls to dampen lending growth in Auckland and other housing markets, as he headed to the National Party caucus meeting in parliament.
"It's up to the bank," English said, according to a report on interest.co.nz. "There's still a bit of uncertainty about just what the dynamics of the Auckland market are. The bank has signaled pretty clearly that it takes the issue quite seriously and they've got a range of tools and they're likely to want to use them."
Asked if he had received advice that the Reserve Bank might be reconsidering its LVR settings, he said: "Not in detail. They've got the Financial Stability Report coming out tomorrow and that will probably signal direction."
The RBNZ's six-monthly gauge of financial stability is due for release at 9am tomorrow, and analysts have speculated that additional curbs on the housing market may free up Governor Graeme Wheeler to reduce interest rates further in the future. The New Zealand dollar fell after English's comments were reported. It was recently trading at 67.45 US cents, from 67.74 cents at 11:41am, immediately before the publication of the article, having touched a six-week low of 67.31 cents.
No comments yet
Auckland Airport kicks off next phase of expansion
Cashed-up Plexure eyes acquisitions to accelerate growth as loss shrinks
Tower turns to 1H profit, lifts FY guidance
IRD should have doubled claim against Watson's Cullen Group - Professor
Investore FY profit falls 16% on smaller valuation gain, signals flat dividend for 2020
Synlait receives cease and desist letter regarding Pokeno plant
21st May 2019 Morning Report
NZ dollar steady ahead of central bank speeches
Auditors need to come out of the shadows and explain the value they add: FMA
MARKET CLOSE: NZ shares gain as Liberal win in Australia boosts bank stocks