Reserve Bank of New Zealand
While NZBA supports the introduction of measures that are aimed at safeguarding financial stability and protecting customers from debt that they cannot afford, we note that a number of measures have been introduced in the last 12 months which address these twin goals. The combination of LVR restrictions, CCCFA changes, increasing interest rates and taxation changes in particular appear to be having the effect of slowing growth in the home lending market. We therefore recommend that the RBNZ waits to assess the impact of these changes and other market changes before introducing a Debt Serviceability Restriction (DSR).