RBA's Lowe on risk measurement

In the speech 'Risk measurement - A central bank perspective' given on 5 September Philip Lowe of the Reserve Bank of Australia said the RBA accepted that banks had effectively managed the risk to their own balance sheets.

However, he justified the decision to raise interest rates in May and again in August by saying the RBA had observed risk to the "financial system as a whole" brought about by rapid changes to households' attitudes to savings and debt.

"Gone are the days when bank deposits were

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