Reserve Bank of New Zealand
- Housing and dairy are risks to stability
- Risks to financial stability outlook have increased
- Housing market imbalances are increasing - a sharp slowdown in housing could challenge fin. stability
- Level of problem loans in dairy sector expected to increase significantly over coming year
- Assessing if further macroprudential tools would be appropriate
more to come
RBNZ report from here
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Note - NZD trading higher. Yesterday we had NZ finance minister Bill English commenting he though further macro prudential tools would be forthcoming. At the margin, if there are, it removes a hurdle to interest rate cuts. Yesterday the NZD fell in the wake of English's comments during the NZ session, but stabilised after and retraced back up.
Today we haven't got more of these measures from the bank - NZD moving higher.
