More coming from the Reserve Bank of Australia today - Financial Stability Review
The RBA's Financial Stability Review is published twice a year
- Today's is due at 0130GMT
From the horse's mouth:
- The Financial Stability Review provides the Bank's assessment of the current condition of the financial system and potential risks to financial stability.
- It contains a number of boxes on topics of special interest, along with occasional articles.
The RBA is full steam ahead on policy easing, promising it'll not be hiking the cash rate until 2024 at the earliest. This is fuelling a skyrocketing housing price boom, which could be a source of financial instability due to the heavy debt loads being taken on to buy shelter. So far the RBA has shrugged off this concern. They have also shrugged off missing their inflation target for many, many years. The argument goes that the RBA should have eased more aggressively, which would have boosted employment ... and also is very likely would have further fuelled the housing price boom ... rock, meet hard place.
Calls for a review of RBA operations are gaining steam in the mainstream: