RBNZ deputy defends change in mortgage ‘speed limit'

Grant Spencer, RBNZ

A Reserve Bank of New Zealand (RBNZ) deputy governor has defended the central bank's decision to relax new limits on mortgage lending amid an Auckland property market rally that he said poses financial stability risks.

The RBNZ announced changes to existing mortgage lending rules on August 21, aimed at curbing a surge in property speculation that has seen Auckland house prices rise by 24% in the past year.

Under the new regime, banks will be able to extend a maximum of 5% of new mortgages to pro

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