RBA Warns of Global Financial Stability Risks as Iran War Rages

Australia’s central bank said local households and firms are broadly well placed to cope with recent interest-rate increases and surging fuel prices from the escalating Middle East conflict, while highlighting the potential for an unexpected shock as a result of elevated international risk.

“The Australian financial system has a good degree of resilience though the risk of a more material adverse shock has increased over recent weeks,” the Reserve Bank said in its Financial Stability Review released in Sydney on Thursday.