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