Deputy Governor of the Reserve Bank of Australia Guy Debelle speaking

  • Little evidence that measures have excessively constrained aggregate credit supply
  • Says share of interest-only (IO) loans down to 27 pct of debt, from around 40 pct
  • Does not consider rollover of remaining IO loans to be a material risk
  • Major banks' share of new home lending is at lowest in a decade
  • Tighter lending standards on developers could lead to sharper pullback in construction

Full text here: Assessing the Effects of Housing Lending Policy Measures

So far no direct comments on his economic outlook nor on policy. Maybe in the Q&A, if one follows.

These are remarks re housing finance. There had been concern that a huge bulge in interest only loans rolling into principal and interest loans due to regulatory requirements (macroprudential policy measures put in place to slow lending for housing and house price growth due to the risks these pose to financial stability) would lead to lower consumer spending and thus have negative impacts on the economy but so far any impacts have not been large. maybe jobs growth is masking this, but that might be a stretch I reckon.