OECD urges RBNZ to adopt debt-to-income restrictions
OECD recommends RBNZ adopt debt-to-income restrictions
The Organisation for Economic Co-operation and Development (OECD) is recommending the Reserve Bank of New Zealand (RBNZ) add debt-to-income (DTI) limits to its macro-prudential toolbox to mitigate the financial system risks posed by surging house prices.
In its economic survey report published on June 15, the OECD finds that the major vulnerability of the New Zealand economy is the “high levels of household debt associated with rapid house price increases”.
The organisation suggests the
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