Import cover, defined as the value of gross international reserves relative to the value of imported goods and services, improved from 20 weeks' worth of goods and services at the end of September 2001 to 24 weeks' worth at the end of December.
Mortgages on interest-only terms have become an increasingly prominent part of Australian housing finance over the past decade. At their recent peak, they accounted for almost 40 per cent of all mortgages. While interest-only loans have a role to play in Australian mortgage finance, their value has limits. Other things equal, interest-only loans can carry greater risks compared with principal-andinterest (P&I) loans.