RBA Sounds Alarm on Rising Global Risks Amid Resilient Aussie Finances
The Reserve Bank of Australia (RBA) has warned that global risks are rising despite Australia's resilient financial system. The RBA's October 2026 Financial Stability Review highlights mounting global risks from high sovereign debt, stretched asset valuations, artificial intelligence investment, and cyber threats.
According to the review, most Australian households, businesses, and banks remain well placed to withstand weaker economic conditions, including a material downturn or sharp fall in housing prices. However, the central bank warns that the biggest threats to financial stability are increasingly coming from overseas.
The RBA notes that high government debt, elevated asset prices, and growing leverage have left global financial markets more vulnerable to a sudden repricing. Geopolitical tensions and rapid technological change are also adding further uncertainty.