IMF urges new macro-pru tools for RBNZ to tackle housing market
Debt-to-income tools would complement existing macro-prudential toolkit and help rein in household credit, fund says
New Zealand’s runaway housing credit growth could be calmed by macro-prudential measures related to debt-to-income (DTI) ratios, directors at the International Monetary Fund have suggested. In its latest Article IV consultation, fund directors suggested expanding the Reserve Bank of New Zealand’s macro-prudential toolkit to include these instruments to help the central bank manage housing-related macro financial risk.
“Debt-to-income ratios would directly target an important dimension of
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