Australia is still a very long way from a recession or a financial crisis, but this week’s news that Westpac is hiking its mortgage rates has raised the risk a bit. After all, higher mortgage rates, falling house prices and tighter credit conditions are not a good mix. That said, the most likely consequence of Australia’s debt binge is nothing more pernicious than a prolonged period of subdued economic growth.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.