Lending Limits introduced by the RBNZ and the impact on buying New Zealand Dollars with Sterling (Tom Holian)

The Reserve Bank of New Zealand has recently suggested that they will be introducing lending limits in an attempt to cool the over inflated housing market in the country.

The central bank has already suggested that an interest rate cut is very likely when they next meet on 10th August.

Typically if interest rates are cut this helps the property market as it means loans become cheaper and therefore creates more demand for property purchases and this increases house prices.

However, this attempt to limit the lending amounts will likely put paid to any problems facing the property market in New Zealand.

The likelihood is that the pending interest rate cut will send GBPNZD rates in an upwards direction and possibly break through 1.90 before the end of this month.

This could be very good news if you’re looking to buy New Zealand Dollars at a cheaper price than currently available.

Indeed, GBPNZD rates were significantly higher pre-Brexit and now the focus is turning towards what is happening in New Zealand.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]

I look forward to hearing from you.