Ireland’s Gerlach points to indirect impact of macro-prudential tools
Indirect channels appear to be showing strongest transmission at present
Macro-prudential tools in Ireland seem to be exerting their strongest effect through indirect channels, Central Bank of Ireland deputy governor Stefan Gerlach said on October 15.
The central bank introduced loan-to-value (LTV) and loan-to-income (LTI) caps in February, to put a brake on rising credit growth. Borrowers now face a 70% LTV limit on buy-to-let properties, 80% for owner-occupiers and 90% for first-time buyers. Mortgages are capped at a maximum of 3.5 times the borrower's annual
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