In today's email we looked in detail at the Reserve Bank's comments as it loosened LVR restrictions, and at the implications of the new directive to the Overseas Investment Office.
Reserve Bank Governor Grant Spencer was at pains yesterday to portray his slight relaxation of Loan to Value Ratio restrictions as no 'green light' for home buyers and bankers to jump back into a market about to boom again.
The Reserve Bank has announced it will slightly relax its Loan to Value Restrictions (LVRs) on owner occupiers and rental property investors from January 1 because of a moderation in house price inflation.
In toda's email we previewed the Reserve Bank's likely relaxation of Loan to Value Restrictions (LVRs), and why any decision won't be a real game changer for first home buyers.
In today's email we look at the funding squeeze on the big banks, Wheeler's warning on houses, and the progress of the DTI limits (and we check out the covfefe coverage of Trump's midnight tweet).
The Reserve Bank has revealed a funding squeeze on New Zealand's big four banks has frustrated attempts to ramp up housing supply in Auckland this year, and the squeeze is set to get worse before it gets better.
The Reserve Bank has reported the risks in the financial system have reduced in the last six months, but warns that house prices remain overvalued in many parts of the country and the most indebted borrowers remain vulnerable to a correction and a sharp rise in interest rates.
The focus in and around yesterday's half-yearly Financial Stability Report was on the Reserve Bank's plans for Debt To Income (DTI) limits and the impact of the Kaikoura quake.
Just a quick note to say to regular readers that after three years of daily emails I am planning to make some changes next year to include Hive News in a bigger, better and more sustainable news venture.
The ghost of John Maynard Keynes' famous quote, 'When the facts change, I change my mind. What do you do, sir?', was alive and well yesterday in both the Beehive and the Reserve Bank.