The Reserve Bank of New Zealand (RBNZ) released its Financial Stability Report on Tuesday. The RBNZ Graeme Wheeler said that risks to the financial stability have increased further in the past six months.

"Although New Zealand's economic growth remains solid, the outlook for the global economy has deteriorated. Despite highly accommodative monetary policies and low oil prices, growth is slowing in a number of trading partner economies," he said.

"Dairy prices remain low with global dairy supply continuing to increase. Many farmers now face a third season of negative cash flow with heavy demand for working capital," the RBNZ governor added.

Wheeler expressed concerns about a rise in prices in the Auckland housing market, adding that the imbalance between housing demand and supply in Auckland should be reduced.