There is a risk of a housing market resurgence (and a sharp lift in high LVR lending) if LVRs were removed at this time. The Bank will continue to review developments, bearing in mind that removal could be made in stages as a safeguard to a resurgent market. 4.
The outlook for the New Zealand Economy In the absence of major unanticipated shocks, prospects look promising for continued robust economic growth over the next two years. If this occurs, the current expansion would be the longest in 50 years 17.