The RBA Financial Stability Review has been published (link is to the full text).
Highlight Headlines via Reuters:
- Financial stability risks have increased globally
- Markets stressed by synchronised policy tightening, geopolitical tension, higher us dollar , rising energy prices
- Stability risks would be magnified by further substantial tightening in global financial conditions
- Australian banks liquid, well capitalised and resilient to any loan arrears
- Important that bank lending standards remain prudent
- Australian households and banks generally have strong financial positions
- Some households already feeling strain from higher rates, likely to last for some time
- Lags mean rate rises yet to pass through completely to mortgage payments
- Small group of borrowers particularly vulnerable to repayment difficulties
- Most mortgage holders have substantial equity in their homes, could weather very large price falls
- Many businesses face rising cost pressures, higher rates, slowing revenue growth
- Indicators of financial stress likely to increase in period ahead
- Cyber-attacks, climate change are major challenges to financial systems
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AUD is barely changed, circa 0.6416
Needs a bicycle stability review by the look of this pic?
