The Reserve Bank of Australia's Financial Stability Review was out late last week
(post: RBA Financial Stability Review: Vulnerabilities in h'hold debt, housing have increased)
In the Australian Financial Review today:
- The Reserve Bank of Australia under governor Philip Lowe has backed the concerns of regulators about bank lending standards
- Rising number of households who are a month away from missing a mortgage payment ... "one-third of borrowers have either no accrued buffer or a buffer of less than one month's payments"
- The focus on households and the state of their balance sheets marks a significant pivot from the previous Financial Stability Review released one month before Dr Lowe was made governor and found that risks to households had lessened.
Full Australian Financial Review piece is here, may be gated: Reserve Bank governor Philip Lowe zeroes in on bank lending
I've been banging on about this, increasing indebtedness could impact on spending and the economy. Lowe flagged it afresh back in February:
- RBA Lowe: Some signs debt levels are affecting household spending
