- Reserve Bank of Australia
The Reserve Bank of Australia expressed once again its concerns over a build-up risk in the property market, but tighter lending standards as well as $18 billion of new equity capital raised by Australia's largest lenders this year made the system safer. Risks to the nation's financial stability continued to surround property markets, with those revolving around housing and mortgage markets higher than average. At the same time, risks to the country's banks rose in the past six months, particularly in the area of commercial lending to property developers.
Australia is likely to post a further set of disappointing economic growth numbers, but fears of the first recession in 24 years appear to be overdone, Reuters' poll of analysts showed. The nation's A$1.6 trillion economy is predicted to expand 2.3% in 2015, compared with July's gross domestic product growth forecast of 2.5%. The downgrade follows official data that showed the economy almost stalled in the second quarter of the year. Yet, more recent figures suggest activity accelerated again in the third quarter, supported by healthy employment growth, a weaker Australian Dollar and a rebound in export shipments.
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