Macfarlane: Monetary Policy & Financial Stability

At a speech given in Melbourne, Reserve Bask of Australia governor, Ian Macfarlane highlights rising risks within the Australian home loan market. Interestingly, he explicitly frames his speech as an attempt to wave a red flag at lending practices which threaten to hit the financial sector if the economy turns down:

"At the moment, as our recent Financial Stability Review pointed out, all the conventional measures of the health of the Australian financial system are giving extremely favourable

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