DTIs not on the cards yet - RBNZ

Speculation about whether or not the Reserve Bank will enact controversial DTIs for residential mortgage borrowers in a bid to quell housing market activity has been rife for months.

When it emerged recently that the Reserve Bank has formally asked the government to allow it to add DTIs to its existing suite of macro-prudential tools, it appeared that DTIs were on the horizon.

But, at the OCR press conference today, Reserve Bank governor Graeme Wheeler provided further clarification of the Bank’s thinking around the introduction of DTIs.

Wheeler said they have requested approval from Finance Minister Bill English to include DTIs as an instrument in the memorandum of understanding around macro-prudential policy.

There have been several discussions with the minister about DTIs and there will be another one in a couple of weeks.