RBNZ Governor Adrian Orr told a parliamentary committee today that “many covid-19 related economic risks are still with us”. “Although recovery is now underway, it will be a lengthy and difficult process but we are well prepared for this challenge and we stand ready to provide stability and support,” he added.
The central announced yesterday to tighten up the Loan-to-Value Ratio (LVR) restriction again to reduce the financial stability risk caused by high-risk mortgage lending. Orr said the central bank was trying to “head off excesses in housing leverage” with the move.
