Sydney – The International Monetary Fund (IMF) on Wednesday warned Australia about its high level of household debt.
In the October Global Financial Stability Report, the IMF said “higher growth in household debt is associated with a greater probability of a banking crisis.”
Throughout most advanced countries, a financial crisis could lead to lower growth,’’ the report said.
With interest rates already at a record low of 1.5 per cent, any increase could add to the growing debt problem.
That’s why on Tuesday, Reserve Bank of Australia governor Dr. Philip Lowe cited “growth in housing debt’’ as one of the major reasons for keeping the cash rate on hold.
Sydney, Oct. 4, 2017 (Xinhua/NAN) The International Monetary Fund (IMF) on Wednesday warned Australia about its high level of household debt.
In the October Global Financial Stability Report, the IMF said “higher growth in household debt is associated with a greater probability of a banking crisis.”
Throughout most advanced countries, a financial crisis could lead to lower growth,’’ the report said.
With interest rates already at a record low of 1.5 per cent, any increase could add to the growing debt problem.
That’s why on Tuesday, Reserve Bank of Australia governor Dr. Philip Lowe cited “growth in housing debt’’ as one of the major reasons for keeping the cash rate on hold.