RBA's FSR: Expected that output will rebound as the economy gradually reopens

In its semi-annual Financial Stability Report (FSR), the Reserve Bank of Australia (RBA) noted that it “expected that output will rebound as the economy gradually reopens, reducing the risk to the financial system.”

Additional takeaways

Risks to financial stability from borrower payment difficulties have generally eased but remain.

Has been a build-up of systemic risks associated with high and rising household indebtedness.

Important that lending standards are maintained, and that the riskiness of system-wide lending does not increase.