NZ deputy wary of using risk weights to shackle house prices
The Reserve Bank of New Zealand deputy governor Grant Spencer today expressed caution over using sectoral risk weights to tackle the build-up of asset bubbles in the housing sector.
In a comment published on the central bank's website, Spencer said a suite of macro-prudential tools were being assessed, including for situations where house prices were rising to unsustainable levels.
Sectoral risk weights, he warned, should be used under very specific conditions. On other occasions it could be
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