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

Michele Bullock is an Assistant Governor(Financial System) at the Reserve Bank of Australia, spoke e

Needs a bicycle stability review by the look of this pic?