The Reserve Bank today published a consultation paper seeking feedback on serviceability restrictions such as debt to income (DTI) limits being added to its macro prudential toolkit.
The Bank is seeking feedback from stakeholders on:
The consultation paper outlines the Reserve Bank’s view on these issues. The paper states that the Bank would not implement a DTI policy in current market conditions, but that the Bank considers that DTI limits could be a useful option in the future.
The consultation paper includes a cost-benefit analysis for a DTI policy and finds there could be significant net benefits.
Feedback should be provided to the Reserve Bank by 18 August 2017.