Australian businesses and households are vulnerable to further shocks following high inflation and the tightening of monetary policy.
According to the Reserve Bank of Australia’s (RBA) most recent Financial Stability Review, the Australian business sector remains resilient off the back of strong demand and high cash buffers supporting profitability and balance sheets.
Nonetheless, the report flagged persistent cost pressures, along with a decline in demand, are putting pressure on some profitability and liquid reserves.
The RBA explained that insolvencies within the business sector have risen from the exceptionally low levels observed during the pandemic. While most are small companies, the report revealed the number of medium and lar…
Read the full article at: https://www.financialstandard.com.au/news/australia-vulnerable-to-further-shocks-rba-179801596