Reserve Bank warns households with high debt relative to income are ‘particularly vulnerable to shocks’Get our free news app, morning email briefing or daily news podcastFollow our Australia news live blog for the latest updatesThe Reserve Bank of Australia says more than a quarter of mortgage holders will be spending at least 30% of their income to repay debt if the central bank’s key interest rate peaks at the level expected by investors in mid-2023.The RBA’s semi-annual financial stability review, released on Friday, found Australian households, firms and banks were “entering this more challenging environment in a strong financial position”, as interest rates rose and global economic headwinds strengthened. Strains, though, were unevenly felt and would likely intensify. Continue reading...
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