NZ central bank says it won't relax loan curbs

Wellington

NEW Zealand's central bank said it won't relax mortgage lending restrictions for now as surging immigration and low borrowing costs could re-ignite the housing market.

"There remains a risk of a resurgence in house-price inflation, particularly in light of strong immigration flows," Reserve Bank of New Zealand Governor Graeme Wheeler said in the bank's semi-annual Financial Stability Report released in Wellington on Wednesday. "We do not consider it appropriate to ease" the lending limits "at this time", he said.