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RBNZ: New Zealand's Economy Relatively Resilient to Pandemic Shock

WELLINGTON, New Zealand--New Zealand's economy has been "relatively resilient" to the shock of the coronavirus pandemic due to local containment of the virus and significant stimulus, the central bank said Wednesday.

The bank, which released its regular report on financial stability, reiterated that it plans to reimpose restrictions on mortgage lending following an increase in high-risk lending.

The bank's low-rates policy and removal of lending restrictions in March has been criticized for causing a too-rapid increase in house prices. Lack of new supply of housing is the underlying factor in rising prices.

Economic resilience means that the financial system hasn't been tested as severely as could have been the case, Reserve Bank of New Zealand Gov. Adrian Orr said in a statement.

 

Write to Stephen Wright at stephen.wright@wsj.com

 

(END) Dow Jones Newswires

November 24, 2020 15:46 ET (20:46 GMT)

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