Already a subscriber?Highly leveraged borrowers are selling out of property as rising mortgage rates stretch budgets and prompt households to consolidate their savings into offset accounts, Reserve Bank of Australia assistant governor Christopher Kent says.
Speaking on Wednesday morning before the release of May inflation figures, Dr Kent conceded recent economic data had been “mixed” and “reinforced the need to remain vigilant to upside risks to inflation”. New loans, in contrast, are valued at about $80 billion per quarter, which is 20 per cent lower than the peak in March 2022.
Dr Kent said the RBA’s 425 basis point in interest rate rises meant monetary policy was “restrictive” and households were feeling a “painful squeeze”.
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