Wednesday, 5th December, 2018
The RBNZ relaxed the high LVR lending speed limits last week, acknowledging that financial stability risks are easing. There have been a number of moving parts impacting the housing market in recent years, but some initial analysis (Page 2) suggests the implementation of the LVR lending limits did have an impact in slowing the housing market. Hence we could expect some additional support to housing over the coming months, albeit potentially offset by flagged higher bank capital requirements and continued investor caution. This week, we begin to receive some key domestic economic data which feed into our Q3 GDP forecast. Meanwhile, offshore key economic data releases include Australian Q3 GDP growth and US employment.