Michele Bullock is RBA Assistant Governor (Financial System), she spoke earlier.
As befits her role comments centred on risks to stability, along the lines of:
- investors chasing yield, pushing up asset prices
- economic environment uncertain
- "there's no compensation for the risk that some of these corporates" are taking
- companies "might be impacted by a global economic downturn"
- if the relationship between unemployment and inflation reasserts itself there will be a "snap back" in risk free rates and a likely fall in asset prices in other areas … "If that happens and people are indebted and they've got lots of leverage you've potentially got issues for the financial system
via Bloomberg
