Australia's housing market did not go down the same road as the United States, Luci Elli, Head of the Financial Stability Department of Reserve Bank of Australia said Thursday.
There were many factors that underpinned Australia's housing market, she noted. The nation has strong lending standards and low-doc loans are also a small niche. Most mortgage lending in Australia are prudentially regulated.
According to Elli, another important mainstay against a US-style outcome is that many Australian households actually pay their mortgages down, often quite quickly.
"I am pleased to say that I do not currently see signs of widespread lax lending practices here in Australia," she added. She urged lenders to refrain from easing lending standards the way they did in the U.S.
Elsewhere, the Australian Bureau of Statistics said average weekly earnings in private and public sectors grew by seasonally adjusted 4.3 percent in November quarter from a year ago. The increase was weaker than the 4.7 percent rise forecast by economists. Quarter-on-quarter, the growth came in at 0.5 percent.
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