Reserve Bank of Australia warns rate cuts will do little to help with an ...

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() Revealed: The terrifying secret document showing how Australia's record-high debt levels could spark an economic catastrophe The Reserve Bank of Australia has issued a warning about high household debt It warned future rate cuts would be ineffectual to cope with economic shock  Australia's household debt to income ratio of 190 per cent is at a record high Economist Martin North said RBA had shown the need for government spending He predicted Australia would fall into a recession unless surplus pledge ditched 

By Stephen Johnson For Daily Mail Australia

Published: 04:43 BST, 2 September 2019 | Updated: 04:44 BST, 2 September 2019

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Australia's record-high debt levels could spark an economic catastrophe with the Reserve Bank issuing a warning in an obscure document.

During the past three decades, the national household debt to income ratio has more than tripled from 60 per cent in 1988 to a 190 per cent now. 

Mortgage, credit card and personal loan debt levels together are the highest in the world after Switzerland, as house prices in Sydney and Melbourne have skyrocketed.

One economist is warning record debt levels were likely to spark an economic catastrophe with a recession likely for the first time since 1991. 

Australia's record-high debt levels could spark an economic catastrophe with the Reserve Bank issuing a warning in an obscure document. During the past three decades, the national household debt to income ratio has more than tripled from 60 per cent in 1988 to a 190 per cent now

Australia's record-high debt levels could spark an economic catastrophe with the Reserve Bank issuing a warning in an obscure document. During the past three decades, the national household debt to income ratio has more than tripled from 60 per cent in 1988 to a 190 per cent now

While interest rates are now at a record-low of one per cent, the Reserve Bank of Australia warned further rate cuts would be ineffectual because debt levels were too high. 

The central bank said financial markets were likely to be unstable between now and 2023.

'The structure of the Australian economy will continue to evolve and economic shocks – which, by definition, are not

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