Pursuits
RBA Intensifies Alert on Aussie Household Debt, Property Market
- Investors could amplify housing cycles, posing future problem
- Shadow banking sector in China poses ‘significant risks’
This article is for subscribers only.
Australia’s central bank signaled deeper concern amid “heightened risks” from rising household debt and escalating property prices in Sydney and Melbourne.
The Reserve Bank of Australia, in its semiannual Financial Stability Review Thursday, said interest-only loans are rising and now account for almost a quarter of owner-occupier mortgages. It also noted about one-third of mortgage holders have either no buffer or less than one month’s repayments.