DTI proposal on hold

The Reserve Bank has been pushing to be allowed to include DTIs in its macro-prudential toolkit for some time and even launched a consultation on the prospect in June.

But now the moderation of the housing market along with the change in government seems to have halted the bank’s DTI drive.

At the Financial Stability Report press conference this morning, Reserve Bank Acting Governor Grant Spencer confirmed that a decision on the adoption of DTIs has been put on hold.

He says the Reserve Bank has agreed with the government to postpone further consultation on the DTIs for the review that they will be conducting with Treasury next year.