Back to a point Snoopy made the other day about Reserve Bank Governor Graham Wheeler raising interest rates to cool the property market.
Stuff have an article about how Wheeler is really trying to target "first home buyers", and will essentially force banks into lower loan value ratios for property owners. He will do this through the 12% lower equity limit for banks. ASB would be a prime target here.
http://www.stuff.co.nz/business/mone...ming-for-loans
This of course has a much smaller to zero impact on Heartland into the future, as they don't really loan out money for first home buyers - its not a market they are targeting. There are no central bank requirements or limits I'm aware of for funding combine harvesters, trucks or livestock.
Wheeler will like the idea of LVRs more than rates rises because he won't necessarily want to target the rest of the economy with higher interest payments when the overall economy is still fragile and growth could be choked by a rates rise.
What do other punters on Sharetrader think?