RBA: budget pressures affecting households Australia-wide, severe financial stress limited

Reserve Bank of Australia Head of Financial Stability Department, Andrea Brischetto:

  • Budget pressures are being felt very broadly across households
  • But incidences of
    severe financial stress are currently limited to much smaller group
  • Most borrowers
    appear well placed to service their debt and cover essential costs
  • Much less than 1% of
    home loans are estimated to currently be in negative equity
  • Broader financial
    stability risks from the household sector appear contained

Financial stress not a barrier to higher rates if the Bank chooses that path seems to be the subtext here.

This article was written by Eamonn Sheridan at www.forexlive.com. Source