According to analysts at TD Securities, the key focus of the Semi-annual RBNZ Financial Stability Report was on relaxing mortgage lending restrictions with the Bank signaling a further potential loosening over coming years.
Key Quotes
“The RBNZ said house price growth is expected to remain modest as restrictions on foreign buyers and changes on rental property weigh on demand. The key announcements on property were 1) share of new mortgage loans with LVR of 80% is increased from 15% to 20% for owner-occupiers and 2) deposits required by investors is lowered from 35% to 30%. Otherwise the agricultural sector rated a mention, the focus on downside risks to the sector given high debt levels and the Bank reinforced offshore risks, as the RBNZ has done in the past.”
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