Original article by John Kehoe
The Australian Financial Review – Page: 3 : 31-Oct-18
Morgan Stanley has warned that Australia is at greater risk of an economic downturn than other Group of 10 nations due to rising household debt. The household debt-to-income ratio in Australia has risen to nearly 200 per cent amid the surge in house prices in recent years. Meanwhile, although house prices have fallen over the last 12 months, the Reserve Bank’s assistant governor Michele Bullock says a regulatory crackdown on lending to investors has not resulted in a significant downturn in the property market.
MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY