As the Reserve Bank prepares to keep lifting interest rates and says households can cope with rising repayments, analysts warn both it and mortgage borrowers could be in for a rude shock.
However, Mr Plank, too, is relatively relaxed about the effect rising mortgage repayments will have, given so few Australians are out of work.
"It also suggests house prices will fall by more than the 15 per cent, or so, we currently anticipate to the end of 2023. "Many families are already under the pump with skyrocketing grocery and petrol costs. Hefty increases to mortgage repayments, on top of this, could tip some into the red."However, Ms Bullock also said it was important to know who was holding the debt, because not all borrowers were alike."If we look at the households that have debt, almost three-quarters of debt outstanding is held by households in the top 40 per cent of the income distribution," she said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Recent home buyers most vulnerable to rate rises: RBAMichele Bullock says Australians are well-placed to manage rising interest rates, but warned cost of living and falling real wages posed a risk to households carrying a lot of debt.
Read more »
Cashed up and employed: RBA says households can withstand higher ratesReserve Bank deputy governor Michele Bullock says households enjoying a strong jobs market can use COVID-era savings to manage a lift in interest rates.
Read more »
Cashed up and employed: RBA says households can withstand higher ratesThe Reserve Bank believes highly indebted households will withstand a substantial increase in interest rates. The biggest risk to home buyers, it says, would be a sharp lift in the unemployment rate. | swrighteconomy rachelclun
Read more »
Chalmers seeks bipartisan approach to imminent RBA reviewThe first independent review of the Reserve Bank since the early 1980s will start within days as the federal government seeks Coalition support for broad terms of reference | swrighteconomy
Read more »
ASX to rise as RBA, BHP and ECB top agendaAustralian shares are set to open higher after a rally overseas as US rate bets eased and data pointed to its economy’s resiliency. Iron ore fell below $US100.
Read more »
ASX to rise as RBA, BHP and ECB top agendaAustralian shares are set to open higher after a rally overseas as US rate bets eased and data pointed to its economy’s resiliency. Iron ore fell below $US100.
Read more »