Moody's: New regulatory measures are credit positive for Australian banks

The US-based ratings agency, Moody’s Investors Service, came out with their latest review on the Australian banks and rising house prices, following the announcement of the RBA policy decision.

Key Points:

Expects Australian banks to raise interest rates on interest only loans to reduce growth in this sector

Effect of measures will be credit positive because they will curb growth in riskier mortgage loans against rising housing market

New regulatory measures are credit positive for Australian banks, RMBS and covered bonds