PHOTO: Reserve Bank Governor Adrian Orr – SUPPLIED
The chances of a crash in house prices are not high, but some controls on lending are needed, according to new Reserve Bank Governor Adrian Orr.
Mr Orr began as the central bank’s new governor last month after ten years heading the New Zealand Superfund.
He said the reasons for the stretched housing market were clear, including strong immigration and lack of supply.
He said loan-to-value-ratio lending restrictions were likely to be a permanent feature of the market, although the levels would vary.
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