LVR restrictions are one of the four macro-prudential tools used to help reduce risks with rising household debt. So, why would the RBNZ take LVR restrictions to the woodshed which could potentially push the household debt to newer heights when uncertainty abounds?
Got any financial freedom plans?
If you start thinking something like “This is all of our life saving, we can’t afford to lose any of it, or we can’t afford to take any risk in the stock market.” I would ask, can you really afford not to invest? Are you sure about that?
And it's a cut, again!
New Zealand appears to be stuck in an economic malaise. Household debt has never been higher, wage growth tends to lag, and gross domestic product per capita (everyone’s share of the economic pie) annual growth has been shrinking. And this was with interest rates already at record lows. Solution? Cut interest rates further.
