Articles tagged Macro-Prudential Tools

The role of rental property investors was firmly in the cross-hairs of the Reserve Bank when it targeted them with its second round of Loan to Value Ratio rules last November, but it only slowed them down for a few months and they are now back with vengeance. They are set to again be the target of debt to income multiple limits that the Reserve Bank is now considering.

Could the Reserve Bank actually ramp up its use of LVR-style constraints of home lending rather than taking them off? That's the potential if a second wind developing in the Auckland housing market continues into next year and the bank follows through on its latest thinking on the use of Macro-Prudential tools to control asset booms.