IMF staff call for new macro-prudential tools in Denmark
Danish authorities told to consider placing limits on debt to income ratios
Danish authorities should develop additional macro-prudential tools, ensuring they can be deployed "without delay" when needed, according to staff at the International Monetary Fund today (May 4).
In a statement concluding their Article IV mission, IMF staff say the central bank needs to prepare an "adequate macro-prudential toolbox", suggesting limits on the debt-to-income (DTI) ratio would be a good place to start.
DTI limits would help keep household debt and debt-service capacity "in check"
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