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Currency Analyst since 2010

RBNZ: upward pressure on NZD may ease

The Reserve Bank of New Zealand’s Deputy Governor Grant Spencer said mortgage-lending restrictions introduced this month could ease upward pressure on NZD by reducing the magnitude of interest-rate increases.

The lending limits, which took effect Oct. 1, mean that only one in 10 new mortgages issued by banks in New Zealand is allowed to exceed 80% of a home’s purchase price. The Reserve Bank introduced the limit in an attempt to cool the housing market without raising rates from a record low and hurting the nation’s economic recovery.

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