The Reserve Bank is warning that the shocks from the Covid-19 pandemic have yet to be felt, because of financial support measures put in place.
In its six monthly financial stability report, the Bank says the economy is in better shape than expected.
However a sharp fall in house prices or a rise in unemployment are both possible threats to New Zealand's financial stability.
The Reserve Bank has also announced a reintroduction of Loan to Value ratios next year to reduce the growth of low-deposit home loans.
Reserve Bank Governor Adrian Orr speaks to Corin Dann.
