PRAGUE, Nov 28 (Reuters) - The Czech central bank said on Thursday the over-valuation of flat prices had risen to between 15-20% this year due to a lack of supply in large cities and it kept lending recommendations for banks in place to keep a lid on real estate markets.
The bank, after meeting on an update of its financial stability, said it maintained its recommendations setting limits on loan-to-value and debt-to-income ratios in mortgage lending. It said it expected residential property price growth to slow in the coming quarters.
As part of its review, it said banks remained resilient to potential shocks. It also maintained a countercyclical capital buffer (CCB) rate for banks’ capital reserves at 2.00%. (Reporting by Jan Lopatka and Jason Hovet)