Parker: Limit LVR restrictions
He will announce his party’s proposals for changes to the Reserve Bank Act tomorrow.
Parker told The Nation at the weekend Labour would give the Reserve Bank “one new tool” in its policy targets agreement and it would change the way it applied its existing tools.
He said loan-to-value limits were not working and Labour would restrict them to the biggest city.
“I mean it’s ridiculous that places that have got no or low house price inflation are caught up in the same rules are Auckland and Christchurch. Loan-to-valuation ratios, if they are necessary, certainly not necessary for example where I come from in Dunedin. We haven’t got house price inflation there so why should our economy be hobbled? Why should our young people be prevented from buying houses because of the blunt way in which loan to valuation ratios are being applied.”
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