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RBA Financial Stability Review
Global economic conditions strengthened further over the past six months, reducing some near-term risks to financial stability and improving the outlook for bank profitability. Despite the gradual withdrawal of monetary stimulus in the United States, financial conditions remain accommodative. There are concerns that the combination of low interest rates and low volatility in financial markets is promoting excessive risk-taking via a search for yield. Indebtedness and asset prices have also risen further in some countries, from already high levels, increasing the risk of a disruptive correction. A number of policy ... (full story)