Australians’ borrowing habits could be on the verge of a significant change, according to the Reserve Bank.
“It is possible that we are witnessing the early part of a new phase where the household spending and borrowing dynamic is different from the past decade and a half,” Glen Stevens, RBA governor, told a Sydney luncheon yesterday.
Mr Stevens said household credit growth had slowed significantly this year, possibly signalling the end of a long period of gearing.
There was a good chance households might “seek to contain and consolidate their debt, grow their consumption spending at a pace closer to income, and perhaps look to save more of their current income than in the recent past,” he said.
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