Housing falls, high debt, slowing consumption pose downside risks to economy, RBA warns

Falling household consumption fuelled by declining real estate values and high debt levels are a key source of uncertainty for the Australian economy, the Reserve Bank has warned. 

In the minutes from its December meeting a fortnight ago, the RBA said board members had noted evolving headwinds and that "this combination of factors posed downside risks". 

The RBA said housing markets in Sydney and Melbourne had continued to ease from record high values and that lending had tightened as a result of the revelations from the financial services Royal Commission. 

ABC's Peter Ryan goes through the minutes for The World Today.