A new financial stability review from the Reserve Bank suggests Australian households remain relatively resilient amid rising interest rates and falling property values, with only a small fraction of borrowers currently in negative equity. However, the central bank cautioned that the country is not shielded from broader global risks, particularly the potential fallout from a sudden downturn in artificial intelligence-driven investment. The report highlights growing concerns over escalating threats to international financial stability, signaling potential challenges ahead despite domestic strengths. Readers seeking deeper analysis on Australia’s economic vulnerabilities and global financial pressures can explore the full assessment.
Warning comes as central bank estimates fewer than one in 100 borrowers owe more on their home than its worthFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastThe Reserve Bank says households are well placed to weather the twin storm of rising interest rates and plunging property prices, but warned that Australia would not be immune to a sudden collapse of the global AI investment boom.The central bank’s latest financial stability review – a biannual assessment of the financial system – said the “threats to global financial stability continue to mount”. Continue reading...
