• Reserve Bank of New Zealand stability review says financial system remains sound and risks to the system have reduced over the past six months

Market news

29 November 2017

Reserve Bank of New Zealand stability review says financial system remains sound and risks to the system have reduced over the past six months

  • The recovery in dairy commodity prices since mid-2016 has helped to reduce bank non-performing loans in the sector

  • Will monitor the impact of these changes and will only make further lvr adjustments if financial stability risks remain contained

  • The reserve bank is undertaking a modest easing of the lvr restriction from jan 1 2018

  • Pressures in the housing market have continued to moderate due to the tightening of lvr restrictions

  • Housing market policies announced by the government are also expected to have a dampening effect on the housing market

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