NEWSLETTER: Banking Sector – Issue 106

7 July 2022

Publications

Welcome to the latest issue of our Banking Sector Newsletter.

A new quarterly statement from Australia’s Council of Financial Regulators (which includes ASIC, APRA, the RBA and Treasury) has revealed that they are wary of risks to the housing market as cash rate rises flow through to mortgage customers, stating that lender responses to a rising cash rate are being closely monitored. The council met with the ACCC, AUSTRAC, the Australian Taxation Office (ATO), and the Australian Financial Complaints Authority (AFCA) to discuss the impacts of an ascending cash rate to the housing market, as higher rates hit mortgage repayments and consumers’ borrowing power.

Federal Treasurer Jim Chalmers has thrown his support behind calls for the Reserve Bank (RBA) board to be more representative of the broader Australian community, following scathing criticism that it is out of touch with workers demanding wage increases. “There has been, I think, a welcome conversation about whether or not the Reserve Bank board is broad enough, representative enough, whether it’s the right size,” he told the ABC’s Insiders.

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