Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
Add as a preferred source on Google
The Reserve Bank of New Zealand has tightened the loan-to-value restrictions (LVR) for residential lending during a decision undertaken in July, which is likely to be effective from September 1, 2016.
The central bank had earlier indicated that the LVR restrictions could be tightened before the end of the year; but in light of the ongoing strength in the real estate market, the RBNZ’s decision for an early introduction did not pose any surprise element for market participants.
A nationwide speed limit on investor lending has been capped at 60 percent LVR. Previously the investor limit was only applied to Auckland and was set at 70 percent. Moreover, a tightening of the nationwide speed limit for owner-occupied lending, with no more than 10 percent of new lending permitted to have an LVR greater than 80 percent. In May last year this limit had been loosened to 15 percent of new lending (except for Auckland, where it remained at 10 percent), Westpac reported.
The impact of LVR restrictions worldwide has been mixed. On a general note, LVRs are likely to dampen house price and credit growth, with the peak occurring within the first six months. However, their long-term impact on the level of house prices remains unclear.
With new steps under way to deal with booming house prices, the market now sees a greater chance of interest rate cuts by the RBNZ. The NZ dollar fell half a cent and the two-year swap rate fell by 4 basis points after the announcement, the report added.
"We were already firmly of the view that the RBNZ would cut the OCR again at the 11 August Monetary Policy Statement. Today’s announcement on LVRs and the hastily scheduled economic update on Thursday, only reinforce our view," Westpac commented in its research note.
Meanwhile, under the existing policy framework, the central bank of New Zealand expects house price inflation and credit growth to hover around 2-5 percentage points lower than the usual. The impact is however, expected to be greater for Auckland, given that the lending restrictions were already tighter in Auckland.
