The Bank for International Settlements (BIS) has published global household debt statistics for the June quarter of 2022. This shows that Australia’s total household debt is the second highest in the world when measured against gross domestic product (GDP). This BIS survey is only current to the June quarter, and thereby only captured the first two (0.75%) of interest rate increases by the Reserve Bank of Australia (RBA). Based on these forecasts, the OCR will rise by between 0.25% and 0.75% from its current level of 3.10%. Accordingly, the share of household income used to service principal and interest debt repayments will soar next year to its highest level in history.

Source: New Zealand Herald December 13, 2022 02:21 UTC