Govt keeps tabs on household debt

(Australian Associated Press)

Treasury secretary John Fraser has joined other regulators in expressing concern over the debt-fuelled property market, saying household debt has been increasing more quickly than incomes in recent years.

“Household debt needs to be watched and current low interest rates should not blind us to longer-term debt service obligations,” he said in a speech at the Stockbrokers Association conference in Sydney. “The Treasury and other regulators are watching the housing market closely.”

The Reserve Bank of Australia has in recent months left official interest rates on hold, in part due to continuing worries about households overextending themselves to pay mortgages.

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