WELLINGTON, May 14 (Reuters) - New Zealand central bank restrictions on riskier low deposit home loans may be phased out rather than removed all together, the bank said on Wednesday.
The Reserve Bank of New Zealand (RBNZ) repeated in its six monthly financial stability report that the limits on high loan-to-value-ratio (LVR) loans have been effective in slowing house price inflation, but would be needed until late this year at least.
RBNZ Deputy Governor Grant Spencer said the LVR rules are seen as temporary and it was possible they would not be removed in one move.
“We are keeping our options open in terms of how and when the removal occurs, so yes, it’s quite possible that when we come to remove the LVRs they could be phased out,” Spencer told a media briefing.
The full report is available at www.rbnz.govt.nz