WELLINGTON - New Zealand’s central bank said on Wednesday that the country’s financial system is resilient but that risks remained elevated, adding that current mortgage restrictions are appropriate for now.
The bank reduced loan-to-value ratio restrictions at its last review in January as housing related risks waned but signaled plans to ramp up banks’ capital requirements to address longer-term vulnerabilities. The bank struck a dovish tone earlier this month as it cut benchmark interest rate for the first time in two-and-a-half years, citing global and domestic risks to growth.
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