RBA minutes point to dangers from debt
Growth in household debt exceeds growth in incomes, creating risks to consumption
High levels of household debt in Australia are a concern for monetary policymakers, who fear they may be starting to impact the economy’s development.
In minutes from the June 6 monetary policy meeting, where the Reserve Bank of Australia’s (RBA) board chose to leave rates on hold at 1.5%, board members noted household incomes are now growing more slowly than debts, a trend that seems to have been “restraining growth” in household consumption.
The housing market in parts of Australia has been
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