Friday, September 23, 2011

Reserve Bank points to uncertain future; unsure if current crisis will spark "serious market dislocation"

By Business editor Peter Ryan

The Reserve Bank has forecast an increasingly uncertain outlook for the global financial system while noting Australia is in a “relatively strong condition”.

In its latest Financial Stability Review, the RBA pointed to an escalation in sovereign debt sustainability in Europe and “severe market reactions” over the past six months.

The Review says Europe’s sovereign debt crisis, and a reassessment of growth prospects in the US and Europe have “helped trigger a period of heightened turbulence” which has raised risk aversion in funding markets.

Listen to my analysis broadcast on "The World Today".

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