And that rapid credit growth. along with house prices, have stabilised
- Adds that if such conditions continue the Bank expects to gradually ease LVR policy in coming years
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LVR is Loan to Valuation Ratio
Is a 'macro prudential' tool.
A lot of the time you'll hear (even from me) that central bank's only tool is interest rates. Some have other sneaky tools such as this. In Australia macroprudential tools tend to be put in place by APRA, the prudential regulation authority. With, err, 'advice' often coming from the RBA (via visits from large chaps with baseball bats and such) .
