The Reserve Bank has today confirmed that the number of people behind in their mortgage repayments is now at the highest level since the Global Financial Crisis.
This confirms the reports by Moody’s this week and Standard and Poor’s Global two weeks ago.
The Head of the Reserve Bank’s Financial Stability Department, Jonathon Kearns, told the Property Council’s Leaders’ Summit today that weak wages growth and rising unemployment in parts of the country have contributed to the rise in the number of people behind in their mortgage repayments.
This is a particular problem in Western Australia where the arrears rate is double the rate in the rest of the country.
Mr Kearns also said the Reserve Bank expects the arrears rate to edge higher.
This is just more evidence of the real life consequences of the Morrison Government’s mismanagement of our economy. Low wage growth, underemployment and rising unemployment in parts of the country are making it harder for a lot of Australians to pay off their mortgage.
This also comes on the back of the release of Reserve Bank minutes today which indicate rates may edge lower because of the continued weakening economy:
“Given the amount of spare capacity in the labour market and the economy more broadly, members agreed that it was more likely than not that a further easing in monetary policy would be appropriate in the period ahead.”
TUESDAY, 18 JUNE 2019
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