*Financial systems in Australia and globally have been resilient to a substantial shock
*An incomplete, or very uneven, economic recovery is a risk for financial stability
*Cyclically low interest rates and rising asset prices create a risk of excessive borrowing
"Asset prices globally have been rising and are at high levels underpinned by low interest rates. Asset prices rising beyond fundamental values, rapid growth in borrowing and weaker lending standards would be a risk to financial stability."
Full Report here: https://www.rba.gov.au/publications/fsr/2021/apr/pdf/financial-stability-review-2021-04.pdf
Comments