June 8, 2017 / 1:27 AM / 2 months ago

RBNZ seeks feedback on possible use of debt-to-income limits on property sector

WELLINGTON, June 8 (Reuters) - The Reserve Bank of New Zealand (RBNZ) on Thursday issued a consultation paper seeking feedback on the potential use of debt to income (DTI) restrictions as part of broader measures to cool the country's housing market.

The paper, which includes a cost-benefit analysis, concluded there could be "significant net benefits" to using such restrictions, RBNZ said.

"The bank would not implement a DTI policy in current market conditions, but that the Bank considers that DTI limits could be a useful option in the future," the RBNZ said in a statement. The bank is seeking feedback by Aug. 18.

Reporting by Ana Nicolaci da Costa.; Editing by Jane Wardell & Shri Navaratnam

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