Trump Threatens 50% Tariff on Canadian Aircraft Amid Escalating U.S.-Canada Trade Dispute 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Asian Currencies Trade Flat as Dollar Retreats After Fed Decision 
Philippine Economy Slows in Late 2025, Raising Expectations of Further Rate Cuts 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
Dollar Struggles as Policy Uncertainty Weighs on Markets Despite Official Support 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
Jerome Powell Attends Supreme Court Hearing on Trump Effort to Fire Fed Governor, Calling It Historic 
Copper Prices Hit Record Highs as Metals Rally Gains Momentum on Geopolitical Tensions 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
New Zealand’s central bank announced plans to relax its mortgage loan-to-value ratio (LVR) restrictions starting December 1, 2025, citing improved housing affordability and stability in the property market. The Reserve Bank of New Zealand (RBNZ) stated that after a prolonged decline, house prices are now within sustainable levels, prompting an adjustment to lending policies.
Under the new policy, banks will be allowed to issue up to 25% of new loans to owner-occupiers with deposits smaller than 20% of the property’s value — up from the current 20% limit. This move is expected to increase access to home financing and support first-time homebuyers. Acting Assistant Governor Angus McGregor said that easing LVR settings would “improve market efficiency and access to credit,” while ensuring that lending growth remains sustainable.
The RBNZ noted that mortgage lending growth remains moderate and the share of high-risk loans has stayed low. According to the Real Estate Institute of New Zealand, home prices are now 16% below their 2021 peak, and in September 2025, prices dropped 1.5% year-over-year, reflecting a cooling but stable market environment.
McGregor emphasized that the timing was right to review the central bank’s default settings, given that the housing market has adjusted to more sustainable levels. The bank also reaffirmed that debt-to-income (DTI) restrictions introduced last year will remain in place to maintain financial resilience and limit potential risks during future market corrections.
Finance Minister Nicola Willis welcomed the change, noting that easing mortgage restrictions would make it easier for Kiwis, particularly first-home buyers, to enter the housing market. The move is seen as part of the government’s broader effort to balance financial stability with housing affordability.
