Rate cuts could load household up with more debt, says analyst | The Business | ABC NEWS

Borrowers are going to be fixated on the Reserve's rate decision on May 20, with Australian households among the most indebted in the world. Veteran bank analyst Brian Johnson at MST Marquee says the more rates are cut, the more people can borrow, the higher house prices will go. He says bank stocks are expensive after a big run up in calendar year 2024, as index fund managers continued to put money in to the heavy weights. He says its a trend that has been continuing in the first quarter of this year and he doesn't see a catalyst to end the demand for banks stocks, saying as compulsory superannuation contributions rise from July 1, more money will be looking for a home, and bank share prices could yet "squeeze higher". He says while he can't see value in any of the banks stocks, CBA is "demonstrably outperforming its peers." Brian Johnson says NAB and CBA aren't as risky as ANZ or Westpac. #ABCBusiness Subscribe: http://ab.co/1svxLVE ABC NEWS provides around the clock coverage of news events as they break in Australia and abroad. It's news when you want it, from Australia's most trusted news organisation. For more from ABC NEWS, click here: https://ab.co/2kxYCZY Watch more ABC NEWS content ad-free on ABC iview: https://ab.co/2OB7Mk1 Go deeper on our ABC NEWS In-depth channel: https://ab.co/2lNeBn2 Like ABC NEWS on Facebook:   / abcnews.au   Follow ABC NEWS on Instagram:   / abcnews_au   Follow ABC NEWS on X (Twitter):   / abcnews   Note: In most cases, our captions are auto-generated. #ABCNEWS #ABCNEWSAustralia