Governing Council did take some comfort from an analysis of the renewal process for five-year mortgages taken out in 2014 and 2015 and up for renewal in 2019 and 2020. This analysis shows a very modest increase in debt-service ratios compared with the date of origination.
At the same time, the Reserve Bank will change the way that interest on ES balances is calculated. To the extent that account holders retain matching funds against their open repo position, those ES balances will earn the cash rate rather than 25 basis points below.