RBA’s Bullock: Investors chasing yield, pushing up asset prices
|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.
The 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.
The Aussie was unchanged on the earlier comments that did not touch upon RBA's monetary policy outlook, now meandering just ahead of four-week lows of 0.6803. The spot lost nearly 40-pips on a big miss on the Australian Jobs data for October.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.