LVR speed limits kept on hold

The RBNZ has made the call as part of its latest Financial Stability Report, released this morning. 

LVR limits have been "successful in reducing the more excessive household mortgage lending", The Reserve Bank said. The central bank added LVR rules have improved the resilience of banks to a deterioration in economic conditions. 

Yet fears of excessive high LVR lending have made the central bank decide against loosening rules from current levels.

NZFSG’s Bruce Patten said the decision “wasn’t a surprise, given the low interest rates and renewed market activity”.