RBA Says Risks Remain for Excessive Borrowing, House Prices

The Reserve Bank of Australia said it is important that lending standards are maintained as the risk remains from excessive borrowing in the country’s housing market.

“In Australia, and some other countries, there have been large increases in housing prices and an acceleration in borrowing,” the central bank said in its semi-annual Financial Stability Review released Friday. “Vulnerabilities can increase if housing market strength turns to exuberance,” the bank said, while noting this week’s move by the Australian Prudential Regulation Authority in response to these risks.