Reserve Bank of New Zealand (RBNZ) Deputy Governor Bascand made some comments on the housing sector and economic recovery, in his latest speech early Thursday.

Key quotes

“Heightened uncertainties remain, COVID-19 still poses risks.”

“To take action as needed to ensure regulated financial institutions' balance sheets are resilient to future stresses in the economy and financial system.”

“We remain in a state of heightened uncertainty; covid still poses risks to the economic recovery and we assess that house prices are at an unsustainable level.”

“Institutions should avoid being over-exposed to vulnerabilities that could arise from excessive debt in the household or business sectors.”

Market reaction

The downbeat remarks fail to have any impact on the kiwi dollar, as it continues to benefit from the US dollar’s weakness amid the risk-on market mood.

NZD/USD is trading at 0.6971, up 0.14% on the day.