Macro-prudential measures should be made to last – RBNZ’s Spencer
Outgoing governor wants temporary framework for loan-to-value ratios to stay
The Reserve Bank of New Zealand should retain the framework for loan-to-value ratio (LVR) restrictions, originally intended as temporary measures, and add “a carefully designed” debt-to-income (DTI) limit to its macro-prudential toolkit, outgoing acting governor Grant Spencer has said.
In a speech in Auckland today (March 13), Spencer said the LVRs “have reduced housing-related risk in the banking system and also helped to ease housing market pressures”.
The tool is also particularly “useful”
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