RBNZ: FSR to indicate further easing of the LVR restrictions? - Westpac

Sandeep Kanihama FXStreet Contributor

Analysts at RBNZ explain that the RBNZ’s six–monthly review of the financial system provides a window of opportunity to review the loan–to– value restrictions on mortgage lending, which is due to be released tomorrow.

Key Quotes

“Last November the RBNZ eased the LVR restrictions, albeit only slightly, and indicated the criteria for a further easing. House price and credit growth would need to slow to more sustainable rates, and the RBNZ would need to be satisfied that an easing wouldn’t lead to a resurgence in the housing market.”

“House price inflation is running at or below household income growth, and credit growth has slowed. A range of new Government policies aimed at cooling the housing market are in progress.”

“Our forecasts assume some further easing of the LVR restrictions over this year. It’s quite possible that the RBNZ will move as early as this month, even if it’s just an incremental move along the way.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.