The Reserve Bank of Australia (RBA) has kept official interest rates unchanged at 1.5% since August 2016. Australian inflation and wage pressures are weak, and many suspect policy settings could remain at current levels well into next year or perhaps even longer. But former RBA Board member Warwick McKibbin believes […]
Reserve Bank of Australia (RBA) Governor Philip Lowe doesn’t seem keen to cut interest rates anytime soon. However, nor does he seem keen to lift them in the foreseeable future, either. Lowe says that rather than low inflation, very high debt levels, and asset prices, are the “number one domestic […]
Australian home loan arrears rose sharply in January. An increase is not unusual at this time of the year, although Standard and Poor’s says this was larger than normal. It expects arrears to remain low due to ongoing labour market strength, but it is monitoring the rollover risk from some […]
APRA, Australia’s banking regulator, introduced restrictions on interest-only mortgage lending in March last year. New data shows the proportion of interest-only lending as a percentage of new mortgage plummeted in the December quarter last year. The RBA says the measures have been “helpful in containing the build-up of risk in […]
The value of Australian home loan lending inched higher in January, led by borrowing by investors. Lending fell by over 2% from a year earlier, driven lower by a sharp decline in investor finance as a result of recent restrictions on interest-only loans. The proportion of owner-occupier loans to first […]
The RBA sees few signs that financial stress is building in Australia despite weak wage growth and high levels of indebtedness. It expressed confidence that tighter lending standards are helping to address building financial stability risks The bank is monitoring rollover risk for investors with fixed rate interest-only loans Australian […]
The rapid crash in bitcoin challenges the notion that it’s a stable store of value, and raises concerns about possible spillover into other markets. The effects of bitcoin and other cryptocurrencies on broader markets could rise if they become more integrated into Wall Street machinery, analysts say. The crash, which […]
Bank of England publishes checklist of key financial stability risks of a “no deal” Brexit. These include the “continuity of existed cross-border insurance and derivative contracts,” and “ensuring a UK legal and regulatory framework for financial services is in place.” BoE Governor Mark Carney laid out the plans at a […]
LONDON -- The Bank of England's financial...
Australian home loans grew both in terms of number and amount in May, according to data released by the Australian Bureau of Statistics (ABS) earlier today. However, the strength was entirely driven by owner-occupiers with the value of investment lending continuing to fall. Over the month, the ABS said that […]
LONDON -- Britain's major lenders have...
The value of lending to Australian housing investors soared in November, continuing the rebound seen following a regulator-enforced slowdown in 2015. According to the ABS, the value of investor lending jumped by 4.9% to $13.269 billion in seasonally adjusted terms, the largest monthly total since June 2015 and the sixth […]
LONDON -- Political risk is the biggest...
The European Central Bank just outlined the...