English rules out DTIs

Stuff reports:

Prime Minister Bill English has ruled out allowing the Reserve Bank to introduce further curbs to home lending, and has signalled it should have a plan to remove a key lending restriction already in place.

​The central bank has come under fire recently from real estate agents saying its loan to value ratio rules (LVRs) are squeezing buyers out of the housing market even as prices flatten and in some case fall.

House prices are now looking stable, which is good. This is why English has ruled out DTIs and said LVRs should eventually go.