Australia’s high household-debt level could impact future rate decisions — RBA

PHOTO:  Household debt

Australia’s high levels of household debt could potentially impact future decisions surrounding the monetary policy and the cash rate, according to the Reserve Bank of Australia.

It all started with the property market boom that ended in 2017, which resulted in many Australians falling knee-deep in debt as wage growth failed to keep up to rising housing costs.  In fact, Australia’s household debt-to-income ratio is already floating above 190%, which is considered amongst the highest in the developed world.

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