Michele Bullock, RBA Assistant Governor (Financial System), was on the wires earlier today, with the key comments reported by Bloomberg are hereunder.
Investors chasing yield, pushing up asset prices.
Economic environment is uncertain.
“There’s no compensation for the risk that some of these corporates” are taking.
Companies “might be impacted by a global economic downturn”.
If the relationship between unemployment and inflation reasserts itself there will be a “snap back” in risk-free rates and a likely fall in asset prices in other areas “¦ “if that happens and people are indebted and they’ve got lots of leverage you’ve potentially got issues for the financial system.
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