WELLINGTON (Reuters) - New Zealand's Central Bank said further easing of the loan-to-value ratio (LVR) restrictions is possible if risks decline, adding that the policy has succeeded in reducing some of the risk associated with high household indebtedness.
"Looking ahead, we are comfortable with further easing in the LVR policy over time, but this is predicated on risks continuing to abate," Reserve Bank of New Zealand's Deputy Governor Geoff Bascand said in a speech released on Monday.
"Specifically, we want to see household debt levels remaining stable relative to incomes, prudent lending standards from banks, and moderate house price inflation," he added.
(Reporting by Praveen Menon; Editing by Sandra Maler)
