WELLINGTON, June 8 (Reuters) - The Reserve Bank of New Zealand (RBNZ) on Thursday issued a consultation paper seeking feedback on the potential use of debt to income (DTI) restrictions as part of broader measures to cool the country’s housing market.
The paper, which includes a cost-benefit analysis, concluded there could be “significant net benefits” to using such restrictions, RBNZ said.
“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 RBNZ said in a statement. The bank is seeking feedback by Aug. 18.
Reporting by Ana Nicolaci da Costa.; Editing by Jane Wardell & Shri Navaratnam