IMF calls for lending restrictions to curb household debt

Record low interest rates and government housing support programs have helped push Australian house prices above pre-pandemic levels. Price appreciation is also strong, with all capitals and regional markets posting double-digit annualised price growth.

This has led to speculation that tighter bank lending standards and other so-called macro-prudential regulations are being considered by regulators.

The International Monetary Fund (IMF) has thrown its hat into the ring, stating that tighter lending rules are needed to prevent the possible negative impact of high household debt resulting from the record low rates:

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