RBNZ weighs tighter macroprudential policy and wider toolkit
Reserve Bank of New Zealand considers adding tool to impose limits on DTI ratios
The Reserve Bank of New Zealand (RBNZ) is considering tightening loan-to-value (LTV) ratio limits later this year, while it will investigate whether debt-to-income (DTI) ratios should be included in its macroprudential toolkit.
Deputy governor Grant Spencer says DTI ratios "might" be useful in the future but the new instrument would have to be agreed by the minister of finance under the memorandum of understanding on macroprudential policy.
"Debt-to-income ratios have been used internationally
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