Reserve Bank of Australia
Quick summary headlines via Reuters
- risks in the household sector have increased, consumption outlook uncertain
- housing risks managable so far; Sydney, Melbourne prices still 30-40 pct higher than in 2012
- most home owners not in negative equity, would take further substantial price falls
- around 2.75 pct of securitised home loans are in negative equity, mostly in WA
- household debt levels remain high, arrears have risen from very low levels
- risks from housing would increase should unemployment rise
- risk that coming large supply of new apartments will pressure prices
- household financial stress generally low, well placed to service their debts
- more rigorous bank lending standards has improved quality of new loans
- Australian financial system more resilient, banks have higher, more liquid capital
- in stress tests banks can weather double-digit unemployment, house price falls over 30 pct
- banks may have to further raise capital ratios to meet apra, rbnz standards
- more needs to be done by banks to limit misconduct after royal commission
- sees vulnerabilities in key trading partners, global financial system
- global growth has moderated, risks of a sharper downturn
Is it just me or do the risks seem to be building?
Yeah, its all under control right now … but wow, the RBA ticking off quite a few risks here. That last one … that is what could further advance the other risks outlined.
AUD down a few tics
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