<p>The <a href="https://www.rba.gov.au/publications/fsr/2022/oct/" target="_blank" rel="nofollow">RBA Financial Stability Review</a> has been published (link is to the full text). </p><p>Highlight Headlines via Reuters:</p><ul><li> Financial stability risks have increased globally</li><li>Markets stressed by synchronised policy tightening, geopolitical tension, higher us dollar, rising energy prices</li><li>Stability risks would be magnified by further substantial tightening in global financial conditions</li><li>Australian banks liquid, well capitalised and resilient to any loan arrears</li><li>Important that bank lending standards remain prudent</li><li> Australian households and banks generally have strong financial positions</li><li>Some households already feeling strain from higher rates, likely to last for some time</li><li>Lags mean rate rises yet to pass through completely to mortgage payments</li><li>Small group of borrowers particularly vulnerable to repayment difficulties</li><li>Most mortgage holders have substantial equity in their homes, could weather very large price falls</li><li>Many businesses face rising cost pressures, higher rates, slowing revenue growth</li><li>Indicators of financial stress likely to increase in period ahead</li><li> Cyber-attacks, climate change are major challenges to financial systems</li></ul><p> –</p><p>AUD is barely changed, circa 0.6416</p><p>Needs a bicycle stability review by the look of this pic?</p>
This article was written by Eamonn Sheridan at forexlive.com.
