Macroprudential Policies in Asia

In Asia, macroprudential policies related to the housing sector has been the most effective. They have reduced house price inflation by two percentage points after one quarter. Moreover, “housing-related macroprudential instruments have had an impact—particularly caps on loan-to-value ratios and the taxation of housing transactions. In particular, such instruments have helped lower credit growth, slow house price inflation, and dampen bank leverage in Asia (although the latter effect is quite small),” says a new IMF study on Macroprudential Policy and Capital Flow Measures in Asia: Use and Effectiveness

Posted by at 7:37 PM

Labels: Global Housing Watch


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