WELLINGTON, June 15 (Reuters) - The Organisation for Economic Co-operation and Development (OECD) said on Thursday that New Zealand’s central bank should add debt-to-income (DTI) limits on home loans to its toolkit to help cool the country’s housing market.
“High household debt and rapid growth in house prices raise financial system risks,” the Paris-based OECD said in its biennial report on the New Zealand economy.
The Reserve Bank of New Zealand (RBNZ) earlier this month said there would be “significant net benefits” in using DTI limits in a consultation paper seeking feedback on the instruments by Aug. 18.
Reporting by Ana Nicolaci da Costa and Charlotte Greenfield. Writing by Jane Wardell