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29.11.2017, 07:26

Reserve Bank of New Zealand stability review says financial system remains sound and risks to the system have reduced over the past six months

  • The recovery in dairy commodity prices since mid-2016 has helped to reduce bank non-performing loans in the sector

  • Will monitor the impact of these changes and will only make further lvr adjustments if financial stability risks remain contained

  • The reserve bank is undertaking a modest easing of the lvr restriction from jan 1 2018

  • Pressures in the housing market have continued to moderate due to the tightening of lvr restrictions

  • Housing market policies announced by the government are also expected to have a dampening effect on the housing market

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