RBNZ tightens macro-prudential screws. RBA delays
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The Reserve Bank of New Zealand (RBNZ) today announced that it will tighten lending rules for mortgages from 1 November, but expects banks to comply with the “spirit” of the new rules immediately.
Specifically, the new rules will see banks now restricted to just 10% of the new lending for mortgages that make up over 80% of the value of the property. Previously this so-called ‘speed limit’ was set at 20%.
This follows other measures implemented earlier this year, including investors being slapped with 40% deposit rules from May and the Ardern Government ending the tax deductibility on interest for investors back in March.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.