NZ central bank sees signs of mortgage curbs starting to work

[WELLINGTON] New Zealand's central bank said that it sees signs that mortgage lending restrictions introduced last month to prevent a housing bubble are starting to work.

A fall in home-building approvals and a drop in attendance at open homes are evidence that the limits on low-deposit lending are "starting to affect the housing market", the Reserve Bank of New Zealand (RBNZ) said in its semi-annual Financial Stability Report in Wellington.

At the same time, "it is too early to assess the impact of the measures on house-price inflation", it said.