The Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler said in the central bank's Financial Stability Report released on Tuesday that the RBNZ will keep the limits on low-deposit home lending. Wheeler added that restrictions on lending have helped to restrain house price inflation.

The RBNZ governor reiterated that the exchange rate of the New Zealand dollar is "unjustified and unsustainable". He pointed out that the RBNZ "still thinks the exchange rate's got further to go".

The central bank also said that "further increases in short-term interest rates may be required in coming years".