19 May 2015
Macroprudential policies remain in focus
FXStreet (Bali) - Damien McColough, Head of A$ Rates Strategy at Westpac, summarizes the most recent developments regarding macroprudential policies.
Key Quotes
Last week saw several notable developments regarding macroprudential policy:
1. RBNZ released their Financial Stability Report, and outlined further tightening of their macroprudential policies - specifically targeting Auckland, and investor loans.
2. NZ unveiled new tax measures on investor housing.
3. Under FOI, RBA published documents and correspondence relating to policy measures to limit lending to property investors and other measures to address economic risks that may arise in the housing market.
4. APRA chairman, Wayne Byres delivered a speech which “put the spotlight on differences in credit assessments and lending standards.”
"Regarding investor lending, he commented “we will be watching carefully to see a moderation in growth in investor lending in the second half of the year as revised plans are implemented.”
"AU Regulators remain concerned regarding “unbalanced” housing markets and risks to household balance sheets."
"There is a lack of precedent for this type of policy domestically, and it may be some time before the effects of this policy are felt."
"However, in our view, this regulatory backdrop is marginally supportive of 3yrs and supports market pricing, and a further lowering of terminal RBA pricing even with the backdrop of a strong housing market."
Key Quotes
Last week saw several notable developments regarding macroprudential policy:
1. RBNZ released their Financial Stability Report, and outlined further tightening of their macroprudential policies - specifically targeting Auckland, and investor loans.
2. NZ unveiled new tax measures on investor housing.
3. Under FOI, RBA published documents and correspondence relating to policy measures to limit lending to property investors and other measures to address economic risks that may arise in the housing market.
4. APRA chairman, Wayne Byres delivered a speech which “put the spotlight on differences in credit assessments and lending standards.”
"Regarding investor lending, he commented “we will be watching carefully to see a moderation in growth in investor lending in the second half of the year as revised plans are implemented.”
"AU Regulators remain concerned regarding “unbalanced” housing markets and risks to household balance sheets."
"There is a lack of precedent for this type of policy domestically, and it may be some time before the effects of this policy are felt."
"However, in our view, this regulatory backdrop is marginally supportive of 3yrs and supports market pricing, and a further lowering of terminal RBA pricing even with the backdrop of a strong housing market."