Evidence that the effect of the latest LVR restrictions might be diminishing comes in new data which reveals a big jump in mortgage lending – including to investors.
The OCR has troughed and the risks are now skewed to OCR hikes from the middle of next year, according to one major bank.
Higher mortgage rates will have a more sustained impact on the housing market than the LVR restrictions have, according to Westpac.
Prospective debt-to-income ratios (DTIs) have hit a stumbling block on the road to their arrival due to Finance Minister Bill English’s ascension to Prime Minister.
New Zealand’s highly charged housing market is the biggest domestic economic risk facing the country but no change to the OCR is on the horizon, the Reserve Bank governor says.
Concerns about the increase in debt relative to incomes mean the Reserve Bank want the tools to address the issue, but economists don't expect to see them introduced anytime soon.