Tag: Financial Stability
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RBA Chief Warns First Home Guarantee Could Drive Riskier Home Loans
RBA Warning: First Home Guarantee and Lending Risk Australia’s central bank, led by Governor Michele Bullock, has signalled concerns that the federal government’s First Home Guarantee could inadvertently push some borrowers toward higher loan-to-value ratios (LVRs). While the Reserve Bank of Australia (RBA) maintains that its monetary policy focus remains on inflation and employment, Bullock…
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First Home Guarantee Risks: RBA Oversight Amid Rising Property Prices
RBA warns of potential risks in the First Home Guarantee Australia’s central bank boss, Michele Bullock, used a Senate estimates hearing to highlight how housing policy settings, particularly the federal First Home Guarantee, could influence borrowers’ risk profiles and the broader financial system. While the Reserve Bank of Australia (RBA) has long distanced itself from…
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RBA Chief Warns First Home Guarantee Could Lift LVRs and Riskier Loans
RBA Warning: First Home Guarantee May Increase LVRs The Reserve Bank of Australia (RBA) is flagging potential risks tied to the federal government’s expanded First Home Guarantee scheme. Central bank governor Michele Bullock told Senate estimates that while the policy aims to boost home ownership, it could, on balance, lead borrowers to take on higher…
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ASEAN+3 Remains Resilient Amid Heightened Global Uncertainties
ASEAN+3 Stays Resilient in a World of Heightened Uncertainty The ASEAN+3 region—encompassing the ten ASEAN member states plus China, Hong Kong, Japan, and Korea—continues to demonstrate resilience amid heightened global uncertainties. The latest releases from the ASEAN+3 Macroeconomic Research Office (AMRO) include the Financial Stability Report (AFSR) 2025 and the October Update of the Regional…
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BoE Warns of Growing AI Valuation Bubble and Potential Market Turbulence
BoE Flags Growing Risk in AI Valuations The Bank of England’s Financial Policy Committee has raised concerns about a rapid expansion in the valuations of leading artificial intelligence companies, warning that equity markets may be more vulnerable to a sudden correction than currently appreciated. In recent months, AI firms have seen eye‑watering increases in perceived…
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Bank of England Sounds Alarm on AI Valuation Bubble: Markets Could Face Sudden Correction
BoE Flags Growing AI Valuation Risk in Global Markets The Bank of England’s financial policy committee (FPC) has warned that the surge in valuations of leading artificial intelligence companies presents a material risk of a sudden market correction. In its assessment, policymakers highlighted that equity markets, particularly those anchored by technology firms focused on AI,…
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UBS Headquarters Move to the US: A Viable Option or a Risky Prestige?
Context: What the UBS headquarters move would mean Rising chatter about UBS potentially relocating its corporate headquarters to the United States has stirred debate across financial markets. The proposal would entail moving the parent company’s seat from Switzerland to the US, with regulatory oversight shifting from the Swiss FINMA to the U.S. Federal Reserve. A…
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Swiss National Bank Maintains Interest Rate at 0.00%
Swiss National Bank’s Rate Decision: A Clear Stance In a move that surprised few, the Swiss National Bank (SNB) has opted to maintain its policy interest rate at an all-time low of 0.00%. This decision comes amid ongoing assessments of inflationary pressures which, according to the central bank, have remained largely unchanged since the second…
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Fitch Ratings Begins Review of France’s Credit Rating
Overview of France’s Current Economic Landscape In recent weeks, the French economic landscape has showcased an unusual sense of calm following the upheaval of the government. The appointment of a new Prime Minister has led to a more stable atmosphere for both investors and stakeholders. This environment sets the stage for Fitch Ratings to conduct…
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Pakistan’s Forex Reserves Increase: September Update
Overview of Pakistan’s Forex Reserves As of September 5, 2023, Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) witnessed a modest increase of $34 million, bringing the total to approximately $14.34 billion. This rise is significant considering the economic challenges the country has faced in recent years. Current Status of Total…