Defending interest rate cuts, the Reserve Bank of Australia’s (RBA) Deputy Governor, Mr Guy Debelle has recently said that rate of arrears on home loans (mortgage arrears) are at decade highs in Australia, but not a cause of concern.
In addition, the following comments were found from Mr Debelle’s Remarks at FINSIA Signature Event:
- Mortgage arrears rate at 1 per cent in Australia, low by both historical and international standards.
- Overall rate is too low to impact bank profit margins or affect financial stability.
- Non-performing loans at present cause little risk to the condition of financial institutions.
- Recent rate cuts would provide a long-term benefit to several mortgage holders.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
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