LVR restrictions to be reviewed

At the press conference following the Monetary Policy Statement, RBNZ Governor Grant Spencer said this would be discussed at the Financial Stability Review on November 29.

When asked whether the housing market had moderated enough for the LVR to be relaxed. Spender reiterated that this would be assessed at the review stage.

He also said that the bank had been in consultation around the possible introduction of a debt to income (DTI) policy and how they would make it work.

“While it makes sense to have such a macroprudential policy in the toolkit, this issue of [whether to introduce this] will be addressed in a review that will be undertaken in the course of talks with Treasury next year,” he said.