RBNZ will proceed with proposal to tighten mortgage lending
|Reuters reported that New Zealand's central bank on Thursday said it would proceed with its proposal to tighten mortgage lending in a bid to control an inflated housing market.
Key notes
''The Reserve Bank of New Zealand (RBNZ) from Nov. 1 will restrict the amount of lending banks can do above a loan-to-value ratio (LVR) of 80% to 10% of all new loans to owner-occupiers, down from 20%, Deputy Governor Geoff Bascand said.
"Restricting high-risk lending will help prevent (housing market) problems getting worse," Bascand said in a statement.''
Market implications
There has been no immediate reaction to the headline and NZD/USD oscillates just below the close of the prior day and a touch below 0.7000 at 0.6994.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.