NZ central bank restricts borrowing for property

Wellington

NEW Zealand's central bank is moving to quell the country's housing boom by restricting the amount of money that property investors can borrow, paving the way for another cut in interest rates.

The Reserve Bank (RBNZ) will require investors across New Zealand to have a deposit of at least 40 per cent, it said in a statement on Tuesday in Wellington. The new rule, which tightens an existing requirement that investors in Auckland have at least a 30 per cent deposit, will be introduced on Sept 1, the RBNZ said.