Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

LVR "speed limits" welcome and necessary

LVR "speed limits" welcome and necessary


The Reserve Bank of New Zealand (RBNZ) has released the details on restrictions to high loan to value ratio mortgages, which will come into effect on the 1st of October. This is a positive step forward in addressing some of the issues immediately facing our economy; this and more tools will be needed, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “We are happy to see the RBNZ explicitly recognising that actions beyond interest rates are needed. This helps to avoid significant negative effects on manufacturers and exporters that are associated with increasing the OCR; increasing the cost of capital and putting further pressure on an already overvalued exchange rate.”

“For a long time the export and import competing sectors have struggled with an overvalued currency, meanwhile the domestic economy and in particular the housing market is driving economic imbalance and threatening financial stability. The single interest rate lever cannot address both issues simultaneously.”

“Restricting the amount of high loan to value ratio mortgages that banks can hold is an important and long needed change; low equity loans carry the highest default risk in the face a financial shock.”

“There are other interventions open to the RBNZ and more might be needed, to better balance our economy.”

“I have already had a number of calls from exporters welcoming the move, and the evident commentary against the policy from those in domestic economy, suggests the RBNZ has, at long last, started to move in the direction of a sustainable, balanced economy.”

ends



© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: