- Risk environment remains challenging
- Some risky asset valuations continue to appear stretched
- Banking system is well capitalised, some evidence to net interest margins have peaked
- Vulnerabilities in market-based finance remain significant
- Full report
The key thing to note is that they say that businesses and households are still able to cope so far with higher interest rates. While there are risks to that in the short-to-medium term, the central bank is not quite in a mode to urgently scale back on tighter policy just yet.
