Agreed that there will be balancing of OCR, FLP, LVRs and further QE.
However, despite what Orr says about having no responsibility for housing, they will be acutely aware of the housing market as it is not in RBNZ interests to see housing instability and with its economic consequences. I don t rate Orr as a fool.
The delay in LVRs until March has much to do with the current uncertainties around Covid risks and the risks to the economy; RBNZ seems prepared to wear increasing house prices in the short term (into the new year) to counter the current uncertainty and risk rather than having the uncertainties/fears generated by having LVRs on and then off.