LVRs still needed - RBNZ
Removing the LVRs would require Reserve Bank confidence that financial stability risks won’t deteriorate again.
Wheeler said that debt-to-income ratios have risen in recent years, while ongoing strong population growth and low interest rates mean that demand continues to outstrip supply.
“That means there’s a risk of a housing market resurgence and a sharp lift in high LVR lending if LVRs were removed at this time.
'The Bank will continue to review developments, bearing in mind that removal could be made in stages as a safeguard to a resurgent market."
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