RBNZ’s home loan restrictions trim projected rate hikes

Wed, 11 Sep 2013

By Paul McBeth Sept. 12 (BusinessDesk) - The Reserve Bank’s looming restrictions on how much private banks can lend against small deposits will help governor Graeme Wheeler from having to hike interest rates when he does start trying to quell inflation. The bank estimates the restrictions on high loan-to-value ratio lending, which is essentially a loan of more than 80 percent of a property’s value, will cut annual house price inflation by between 1 and 4 percentage points, and reduce household credit growth by between 1 and 3 percentage poi...

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