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.
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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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