RBA sees risks in market optimism
With markets expecting a soft landing the RBA warns of an asset price shock if conditions change.
The RBA has made sure to say that it could still raise rates, despite market expectations.
The Reserve Bank of Australia says global debt and equity markets are pricing in a soft landing for the global economy but there is a high risk that “worse than expected macro-economic outcomes” could prompt a “disorderly” fall in asset prices.
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