Wheeler: lower New Zealand dollar is needed to support growth

Graeme Wheeler, Reserve Bank of New Zealand Governor, said:
•    In the absence of major unexpected shocks, the outlook looks promising for continued strong economic growth in New Zealand over the next two years.
•    The biggest risk we face at this stage is inflated global asset prices and the continued accumulation of global debt.
•    The loan-to-value ratio (LVR) is not expected to be a temporary measure, but its removal requires a degree of confidence that the risks of financial stability will not deteriorate again.
•    There is a risk of renewed housing market risk if the loan-to-value ratio (LVR) is canceled at present.
•    Long-term inflation expectations remain at the target midpoint of 2%.
•    The debt-to-income ratio will not be used while the housing market will continue to moderate.
•    The New Zealand dollar needs to fall to increase tradeable inflation and help to achieve more balanced growth.
•    House prices cannot be ruled out due to lower mortgage rates and net migration flows.