In our view, housing lending credit standards are continuing to tighten as banks are responding to the macro prudential requirements and buffers imposed by the regulator. We believe these changes are likely to result in ongoing pressure on the outlook for banks’ volume growth. Furthermore, we see risks that some borrowers will find it difficult to refinance their current interest-only loans, putting significant pressure on these households’ ability to sustain their current level of debt.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
