RBA official: Risks to Australia’s financial stability ‘a little elevated’

SYDNEY — Financial stability risks in Australia are a “little elevated,” and could worsen if unemployment were to head higher, Reserve Bank of Australia Deputy Gov., Michele Bullock, said Tuesday.

In assessing whether Australian households are prepared for further interest rate increases, Bullock warned in a speech that some lower-income households will feel a sting from interest rate increases, as mortgage repayments are set to rise further.

“While…