At this stage we consider the earliest date for beginning to remove LVRs is likely to be late in the year. 11. Conclusion  Housing market and credit cycles are part of the economic landscape and, although they can be moderated through sound policy, they cannot be eliminated.
When pressures become excessive the cycle can be damaging for the financial system and for the broader economy. This is why we monitor housing closely and why housing is a key factor influencing our monetary and financial policies. House price pressures in New Zealand since late 2012 have been driven by supply shortages and by strong demand supported by easy credit.