RBA: budget pressures affecting households Australia-wide, severe financial stress limited

<p>Reserve Bank of Australia Head of Financial Stability Department, Andrea Brischetto:</p><ul><li>
Budget pressures are being felt very broadly across households</li><li>But incidences of
severe financial stress are currently limited to much smaller group</li><li>Most borrowers
appear well placed to service their debt and cover essential costs</li><li>Much less than 1% of
home loans are estimated to currently be in negative equity</li><li>Broader financial
stability risks from the household sector appear contained</li></ul><p>Financial stress not a barrier to higher rates if the Bank chooses that path seems to be the subtext here. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.