By https://www.abc.net.au/news/david-chau/8543210
Publication Date: 2026-03-19 02:01:00
The outbreak of war in the Middle East means the Australian economy now finds itself in an environment where risks are “high and rising”, says the latest Financial Stability Review published today.
Yet the Reserve Bank insists Australia’s financial system is still “resilient” and that the vast majority of households can weather the two rate hikes announced – so far.
Should a major economic downturn occur, the country’s banks would be “well positioned to absorb significant credit losses while continuing to support the economy through lending to households and businesses,” the RBA said.
The biggest risk identified by the RBA is the “potential for heightened geopolitical tensions to spill over into a severe international shock”.
“The…
