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RBA Financial Stability Review
The global financial system continues to be buoyed by strong investor risk appetite. International financial markets have been remarkably stable for much of the past six months, with historically low volatility and ‘search for yield’ behaviour evident in many asset classes amid highly expansionary monetary policy. This environment has supported economic growth and an ongoing improvement in most banking systems. Nonetheless, a significant reassessment of risk could lead to a sharp repricing of assets, particularly if markets are less liquid than anticipated. Potential triggers for such a reappraisal include ... (full story)