RBA Financial Stability Review released: Growth forecasts have also been revised down and there are risks of a sharper downturn

• The bi-annual RBA Financial Stability Review has been released.

Key topics of interest were their assessment of the housing market, tightening lending practices, and short-term funding rates:

• Growth in the major advanced economies, and the global economy more broadly, moderated in the second half of 2018 and into 2019.
• Growth forecasts have also been revised down and there are risks of a sharper downturn.
• Risks in the household sector have increased, consumption outlook uncertain.
• Housing risks managable so far; Sydney, Melbourne prices still 30-40 pct higher than in 2012.
• Most home owners not in negative equity, would take further substantial price falls around 2.75 pct of securitised home loans are in negative equity.
• Household debt levels remain high, arrears have risen from very low levels.
• Risks from housing would increase should unemployment rise.
• Risk that coming large supply of new apartments will pressure prices.

More to come ... 

About The Financial Stability Review:

The Financial Stability Review, released by Reserve Bank of Australia, provides the Bank's assessment of the current condition of the financial system and potential risks to financial stability. It contains a number of boxes on topics of special interest, along with occasional articles. The Review is issued half-yearly.