RBA: High debt levels could complicate future policy decisions

The Reserve Bank of Australia (RBA) published its corporate plan on Friday, in order today make future policy decisions.

Main Points:

High debt levels could complicate future policy decisions. 

High debt could make the economy less resilient to shocks.

Structure of the Australian economy will continue to evolve.

Economic shocks, by definition, are not forecastable - will occur.

Movements in asset values and leverage may be more important for economic developments than in the past.

The main risk to financial stability mainly in credit quality.