RBNZ deputy threatens use of loan-to-value restrictions to curb housing demand
The Reserve Bank of New Zealand could introduce restrictions on banks' loan-to-value (LTV) ratios in a bid to cool the country's overheating housing market, according to deputy governor Grant Spencer.
"We at the Reserve Bank see the current overheated housing market as a real threat to future financial stability," he said.
Spencer argued that the low-inflation environment rules out the possibility of tackling high housing demand with a change in interest rates, and said lowering banks' LTVs
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