The Reserve Bank of Australia (RBA) has said that it will need to time to analyse the effectiveness of efforts to reduce the risk of property investments.
In documents released by the RBA, it said that the increased crackdown on risky lending and improved surveillance of lenders would help to "increase the resilience of household balance sheets", the Herald Sun reports. Economists have also said that the RBA would like to see wages increase and household debt reduce before they loosen up on lending regulations.
Recent government statistics should go some way to reassuring those in the financial sector. There has recently been an increase in those in full-time employment, and Tapas Strickland, an economist at the National Bank of Australia, said that the figures should calm nerves in the market. "The unemployment rate has remained at 5.9 percent. Last week’s bumper jobs figures should help alleviate (the RBA’s) concerns ... but this will be an important area to watch."
The news came after the International Monetary Fund (IMF) has warned that the global economy could be in crisis if Europe and America continue to move towards protectionism. In the IMF's latest biannual World Economic Outlook, it suggested that there were major hurdles to overcome.
Trump's administration focusing on the national rather than global economy and the uncertainty prevailing in France due to the upcoming elections were two of the primary destabilising forces.
The growth outlook for Australia is a little behind the national average at 3.1 percent. This is up by 0.1 percent from the previous forecast which was made in October. Overall the global economy is looking quite robust. However, experts have warned that once the effects of Brexit, Trump and the potential fallout from the French election take place this could all change.
