High household debt levels amassed in the past decade have left Australian households among the most vulnerable to a sharp rise in global interest rates, the Bank for International Settlements warned on Sunday.

Australia's household debt-to-income ratio is at an all-time high of 189 per cent, according to the Reserve Bank of Australia.

In a generally positive outlook on the global economy, the Basel-based bank of central bankers points out the generally high risk in many economics due to high debt levels amassed during a period of low interest rates.

"Maturing financial cycles and high debt levels raise the risk of potential weakness in consumption and, in some cases, investment," said BIS head of monetary economics Dr Claudio Borio. "In many economies, the expansion has been consumption-led. The empirical evidence indicates that such expansions are less sustainable. Our analysis suggests that a number of economies where household debt is historically high can be vulnerable, especially should interest rates rise considerably."