Low-deposit home loans ‘financial stability risk’

[ad_1] The loan-to-value restrictions will be restored next year, as both the Reserve Bank and the government blame who should do more to curb the rise in house prices. The Reserve Bank (RBNZ) made the announcement on loan-to-value restrictions (LVR) in its Financial Stability Report (FSR) on Wednesday morning. In …

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Adrian Orr considers Grant Robertson’s request that the Reserve Bank of New Zealand take house prices into account, but says: “Our monetary policy actions have been and will continue to be effective in supporting the economy.”

[ad_1] The Reserve Bank (RBNZ) says it will consider the government’s suggestion to take house prices into account when formulating monetary policy. Finance Minister Grant Robertson on Tuesday morning wrote to RBNZ Governor Adrian Orr, suggesting that the Remit of the Monetary Policy Committee (MPC) be modified to require it …

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