RBA’s Debelle: Risks that mortgage arrears currently pose to bank profitability are low
|Reserve Bank of Australia (RBA) Deputy Governor Debelle is on the wires now, via Reuters, making a scheduled speech, with the key comments found below.
Mortgage arrears rate at 1%, low by historical, international standards.
Mortgage arrears rates have been increasing in recent years, highest for around a decade.
Unlikely that national arrears rate will increase substantially from here.
Tighter lending standards placed downward pressure on arrears.
Non-performing loans currently pose little risk to health of financial institutions.
Risks that mortgage arrears currently pose to bank profitability are low.
The above comments had little impact on the Aussie, as Debelle did not offer any insights into the monetary policy outlook. The AUD/USD pair continues with its struggle to take out the 0.6800 level amid trade deal hopes-led risk recovery.
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