Economy

Recent mortgage borrowers are vulnerable: RBNZ

Jenny Ruth
Wed, 05 May 2021

Reserve Bank deputy governor Geoff Bascand said rising asset prices are an international phenomenon.
Jenny Ruth
Wed, 05 May 2021
Some New Zealand businesses remain vulnerable and low global interest rates are resulting in increased risk-taking and higher asset prices, according to the Reserve Bank.On releasing the banking regulator's latest financial stability report, deputy governor Geoff Bascand said higher asset prices are an international phenomenon that is most visible in NZ in higher house prices."A high proportion of new lending has had high debt-to-income and loan-to-value ratios. This makes recent borrowers more vulnerable to a rise in mortgage rates an...

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