Add Category
Treasurer Jim Chalmers says the RBA's latest financial stability review is an important but grim reminder of the challenges facing households, the economy and the world in the midst of higher interest rates and inflation.
But despite the global economic challenges, he says Australia is well placed to navigate a slower economic environment.
He also acknowledged the current state of the economy with higher interest rates and inflation impacting thousands of households.
"The RBA report is an important reminder of the ongoing pressures facing the global financial system and the global economy," he said.
"Higher interest rates, persistent inflation and the slowdown in China, particularly its struggling property sector, are weighing on global growth and will inevitably contribute to slower growth at home over the year ahead.
"In the face of the challenges coming at us from around the world, Australia's resilient labour market and well-regulated financial system are among our strengths.
"We know Australians are doing it tough and higher interest rates will continue to bite, particularly as more and more households come off lower fixed-rate mortgages.
"In these difficult times, the Albanese Government is focused on making the budget more responsible and our economy more resilient, while rolling out billions of dollars of cost-of-living relief in a way that doesn't add to inflationary pressures.