8 Apr 2015
Further macro-prudential measures by the RBNZ?
FXStreet (Bali) - According to ASB chief economist Nick Tuffley, cited by NZ-based newspaper stuff, Auckland's rising prices in the property market may lead to further macro-prudential measures by the RBNZ.
Key Quotes - Stuff
ASB chief economist Nick Tuffley said annual house price growth in Auckland was hitting 15 per cent on some measures, not far off the near 20 per cent ascent in 2013.
Tuffley said the Reserve Bank would be looking to introduce new tools alongside its existing limits on loan-to-value ratios (LVR) to try and cool the market.
The central bank is already looking to crack down on property investors, requiring banks to hold more capital against any loans made to them.
However, Tuffley said further steps might well be required.
"It's not clear whether that'll have enough impact to change the pricing of those loans," he said.
Key Quotes - Stuff
ASB chief economist Nick Tuffley said annual house price growth in Auckland was hitting 15 per cent on some measures, not far off the near 20 per cent ascent in 2013.
Tuffley said the Reserve Bank would be looking to introduce new tools alongside its existing limits on loan-to-value ratios (LVR) to try and cool the market.
The central bank is already looking to crack down on property investors, requiring banks to hold more capital against any loans made to them.
However, Tuffley said further steps might well be required.
"It's not clear whether that'll have enough impact to change the pricing of those loans," he said.