News Snapshot:
The Reserve Bank estimates around 5 per cent of mortgage borrowers are spending more on their mortgage repayments and essential living expenses than they earn. In its latest half-yearly Financial Stability Review (FSR), the bank estimates this could peak above 6 per cent by the middle of this year if inflation remains higher than it expects and interest rates were to rise half a percentage point above current levels. As inflation continues falling and interest rates follow later this year or early next, the proportion of borrowers in so-called "negative cashflow" is forecast to fall below December 2023 levels by...
