Australian household finances – disposable income just can’t keep up
Posted on 18 June 2010
The RBA updated its household finances data today (see table B-21 here).
We’ll return to the theme later – for the moment let’s just note that while we might have expected interest to disposable income to have risen with the increases in official interest rates, debt to disposable income was also up.
3 responses to Australian household finances – disposable income just can’t keep up
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Rohan,
Isn’t that just a reflection of the FHOB?
That might suggest that the current rate of deleveraging by households isn’t fast enough?
As this is March data, assume that the FHOB was already factored in (as it closed in December). So while number of loans has been easing, the increase in the average size must have been sufficient to push debt growth well ahead of household income growth…
[...] to fall across all categories. With house prices at highs levels relative to income (see here and here), the odds are shortening that we are due a deeper correction both in the number and size [...]