The CEO of the nation’s biggest bank, CBA’s Matt Comyn, gave evidence yesterday to the House of Representatives Economics Standing Committee warning that Australia’s house price boom is unsustainable and calling for ‘modest’ moves to cool the market.
The CBA has also lifted its benchmark floor rate to 5.25% from 5.10%, thus setting a borrowers’ capacity to repay a mortgage at a higher rate:
[Comyn said] it is “increasingly concerned” about the prospect of mortgage stress… [And] it was prudent to take proactive regulatory action “sooner rather than later” to avoid harsher measures in the future, like those taken in New Zealand…
