The Reserve Bank made the announcement on loan to value ratio restrictions (LVRs) in its Financial Stability Report (FSR) on Wednesday morning. It measures the stability of the financial system along with the health of the insurance sector and payments system. The FSR also lays out the risks a downturn in house prices would bring to the economy. Robert Kitchin/Stuff The Reserve Bank says rapidly increasing house prices carry a longer-term risk to financial stability. The Reserve Bank also observed the situation could have been worse without the fiscal, monetary and health responses from both the Government and the Reserve Bank itself.

Source: Stuff November 24, 2020 20:15 UTC