Michele Bullock is Assistant Governor (Financial System)
- Says rising household debt is a risk
- Says widespread financial stress among households is not imminent
- Says banks' mortgage risks appears to be currently low
- Says arrears rates on housing loans remain very low
- No doubt some households feeling pressure of high debt levels
- Number of reasons why debt situation is not as severe as numbers suggest
- Only relatively small share of borrowers finding it hard to service principal-and-interest loan
- Large proportion of debt is held by households with ability to service it
(bolding above is mine) Is there much here we didn't know ? (doomers excluded)
Let's see how the trade wars play out, lower income flowing into Australia (from exports that may well suffer … which is not entirely clear yet, as least to me ), if that should result, would be a negative input to the risk assessment.
Here is the full text: The Evolution of Household Sector Risks
