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.
