Australian central banker warns global factors tightening local financial conditions

Australia’s central bank says global rate expectations are lifting local borrowing costs, tightening financial conditions despite stable domestic banking fundamentals.

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Australian central banker warns global factors tightening local financial conditions

Australian central banker warns global factors tightening local financial conditions
An Australian central banker said today that global financial conditions are exerting upward pressure on Australia’s borrowing costs, noting that offshore funding markets have become more volatile in recent weeks. The Reserve Bank of Australia is monitoring spillover effects from US and Japanese interest rate expectations, which have influenced domestic bond yields. Officials emphasized that while local banking fundamentals remain stable, rising global funding costs could make lending conditions tighter heading into early 2026.
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  • economy
  • australia