Deputy Governor of the Reserve Bank of New Zealand Geoff Bascand speaking on macroprudential tools.
- Reserve Bank has refreshed its strategy for using macroprudential policy
- macroprudential policy is a key line of defence for safeguarding financial stability. Our refreshed strategy on macroprudential policy provides us with greater clarity on how we will use macroprudential tools in the future
- In the macroprudential toolkit the most well-known tool is the loan-to-value ratio policy (LVR) which improves the resilience of mortgage loans.
- Bascand noted that further easing in LVRs is possible if risks decline,
Link here to RBNZ if interested
