Australia at risk from major global financial shock, Reserve Bank warns
The Reserve Bank of Australia reports that the country's financial system remains resilient despite rising interest rates and falling property prices. While global economic risks persist, the bank estimates that very few homeowners are at risk of negative equity.
Why it matters
Provides critical insight into the stability of the Australian housing market and the potential impact of global economic volatility on household debt.
The RBA in its latest financial stability review says that even a 20% property price crash would only push around 5% of mortgages into negative equity. Photograph: Sarah Wilson/AAP The RBA in its latest financial stability review says that even a 20% property price crash would only push around 5% of mortgages into negative equity. Photograph: Sarah Wilson/AAP Interest rates Australia at risk from major global financial shock, Reserve Bank warns Warning comes as central bank estimates fewer than one in 100 borrowers owe more on their home than its worth
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