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12 Nov 2014
RBNZ: Increased concerns on dairy sector - ANZ
FXStreet (Bali) - Mark Smith, Senior Economist at ANZ, reviews the RBNZ Financial Stability Report, noting that the Central Bank showed increased concerns regarding the dairy sector.
Key Quotes
"The RBNZ reiterated that the overall financial system is sound, but the risk profile has changed, with increased concerns regarding the dairy sector – for obvious reasons, given high debt and a lower payout."
"Despite widespread speculation to the contrary, the RBNZ signalled an intention to maintain the high-LVR speed limits for mortgage borrowing in their current form, and gave no likely timetable for their removal. The RBNZ are content that the high-LVR speed limits have worked well to slow the housing market, taking up to 50bps out of the required OCR track."
"While the RBNZ sounds well pleased with the easing in house price inflation, they are not about to declare the war won. High net migration was again cited as a key area of housing market concern – despite this comment having been dropped in the October OCR Review."
"The RBNZ reiterated their usual comments on the high NZD, which didn’t elicit much market response."
"Apart from confirmation that the high-LVR lending limits will be with us for some time, we see little new news in today’s FSR."
Key Quotes
"The RBNZ reiterated that the overall financial system is sound, but the risk profile has changed, with increased concerns regarding the dairy sector – for obvious reasons, given high debt and a lower payout."
"Despite widespread speculation to the contrary, the RBNZ signalled an intention to maintain the high-LVR speed limits for mortgage borrowing in their current form, and gave no likely timetable for their removal. The RBNZ are content that the high-LVR speed limits have worked well to slow the housing market, taking up to 50bps out of the required OCR track."
"While the RBNZ sounds well pleased with the easing in house price inflation, they are not about to declare the war won. High net migration was again cited as a key area of housing market concern – despite this comment having been dropped in the October OCR Review."
"The RBNZ reiterated their usual comments on the high NZD, which didn’t elicit much market response."
"Apart from confirmation that the high-LVR lending limits will be with us for some time, we see little new news in today’s FSR."