RBNZ is reinstating LVR restrictions to pre covid level

Ross J Burland FXStreet

The Reserve Bank of New Zealand says that it is putting in place more stringent LVR restrictions to reduce risks to financial stability caused by high-risk mortgage lending

More statements

LVR restrictions do not apply to new residential construction.
Says now concerned about the risk a sharp correction in the housing market poses for financial stability.
Says there is evidence of a speculative dynamic emerging with many buyers becoming highly leveraged.
Says as of 1 March the reserve bank will be reinstating LVR restrictions at the same level they were set at prior to the onset of covid-19.
Says further tightening of investors’ restrictions taking effect on 1 May.

The news has not impacted the forex space as this was well telegraphed in prior statements from the bank.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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