Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Australia’s banks can weather global banking volatility and can continue business and private lending, despite elevated risks in the global banking sectors, according to the Reserve Bank of Australia’s semi-annual Financial Stability Review.
A small number of the country's mortgage holders with low savings and income, and high debt could find servicing their loan difficult, due to higher rates, the report stated.
The review follows the RBA’s decision earlier this week to pause interest rates at 3.6% as it reviews the cumulative impact of its 350bp increases since May 2022. (See: MNI RBA WATCH: Rates on Hold, Bank Charts Cautious Path). The Reserve added it would monitor closely international developments and supply-side factors, such as housing, utilities and productivity.
The FSR also noted the average variable rate on large outstanding business loans increased by about 320bp between April 2022 and February 2023. However, the debt-servicing costs of many listed companies increased by much less than this and remains low by historical standards. Company insolvencies have also reached pre-pandemic levels, but are mainly focused on smaller enterprises (see charts below).
ACGBs held steady with U.S. Treasurys following the RBA’s release (See: Steady After RBA FSR & Trade Data). 
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.