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Could interest-only crackdown trigger a US-style housing bust?

Wednesday, 7 February 2018

ABC’s 7.30 Report ran an interesting segment last night examining whether APRA’s interest-only mortgage crackdown could potentially trigger a US-style housing bust. Below is the transcript from the report:

LEIGH SALES, PRESENTER: As I just mentioned, the Federal Reserve in the US is raising interest rates there. Professor Wolfers didn’t want to speculate but other experts believe it is a matter of time until Australian rates start creeping upwards too – maybe later this year.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.