RBA says global tightening is spilling into Australia’s financing costs

The Reserve Bank of Australia said today that global interest-rate expectations are putting upward pressure on Australia’s financial conditions, with domestic lending rates reflecting volatility in US and Japanese markets. While inflation remains within expected bands, the central bank cautioned that global shifts could affect credit availability for households and businesses. Economists note that Australia’s financial system remains resilient but could experience reduced liquidity if offshore volatility grows.