Blog

The RBA has posted an informative article highlighting the effects of the COVID-19 pandemic on fixed-rate housing loans. It found that during COVID, the value of fixed-rate housing loans increased substantially, which has delayed the effect of the higher cash rate on borrowers’ cash flows. A key issue for the economic outlook, and by implication financial stability, relates to the ability of borrowers with fixed-rate loans to adjust to substantially higher borrowing costs when their fixed-rate mortgages expire. Borrowers with expiring fixed-rate loans face large increases in their repayments. Fixed-rate loans have riskier characteristics than variable-rate loans.

This is what Google is suggesting they will be doing to help us identify what they call 'synthetic' images. We're not really in a place to know if this will be the best solution....