Australian household debt ratios hit record

By Leith van Onselen

The Reserve Bank of Australia (RBA) today updated its quarterly financial statistics, which revealed that Australian household debt rose to an all-time high in the December quarter of 2014.

The ratio of mortgage debt-to-disposable income hit a record 140.3% in December, up from June 2010 peak of 134.7% (see next chart).

ScreenHunter_6817 Mar. 31 13.17

The ratio of mortgage debt-to-GDP was also at a record high 89.1% as at December 2014 (see next chart).

ScreenHunter_6819 Mar. 31 13.22

Whereas the ratio of household debt-to-disposable income hit a record 153.8% in December, up from the September 2006 peak of 152.7% (see next chart).

ScreenHunter_6818 Mar. 31 13.18

Well done Australia and RBA for leveraging-up the nation into the oncoming structural adjustment.

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