Australian Households Coping Well With Soaring Rates, Inflation, RBA Says

SYDNEY—Despite interest rates in Australia rising at a record pace over the last year and half, household budgets have adapted to sharply rising mortgage repayments, and instances of extreme financial stress are scant, according to the Reserve Bank of Australia.

“While budget pressures are being widely felt across indebted households, most of these households have managed to adjust to these pressures,” Andrea Brischetto, head of financial stability at the RBA, said Friday.