Reserve Bank Governor Graeme Wheeler has outlined the new rules this morning, and told banks they will be expected to act immediately. • Required deposit level remains at 20 per cent for at least 90 per cent of bank lending. ASB Bank economist Nick Tuffley said the Reserve Bank was " acting with a degree of haste that seemed lacking in recent public statements". "But the intention to put new lending restrictions in place means one potential roadblock to responding to the weak inflation environment will be reduced. He said the announcement of new house lending restrictions reinforced the likelihood of the Reserve Bank cutting rates in August, given the very tight timeline proposed for implementing the added restrictions.

Source: New Zealand Herald July 18, 2016 21:30 UTC