DTIs should be in RBNZ toolkit - IMF
The IMF has just released its preliminary report on its most recent New Zealand mission and it recommends a number of hard line measures directed at reigning in property investment.
Chief among these is the introduction of DTIs into the Reserve Bank’s macro-prudential toolkit to further enhance the resilience of New Zealand’s financial sector.
According to the IMF, housing-related macro-financial vulnerabilities are expected to increase in the near term – although they will potential stabilise at a high level in the medium term.
This is due to the demand-supply imbalance in the housing market, especially in Auckland, which has led to a house price boom and overvaluation, along with high levels of household debt.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
