Lowe stresses the importance of financial buffers
The governor of the Reserve Bank of Australia has stressed that despite the cost of financial buffers, "skimping" on them would expose the economy to more risk.
"It is true that building these buffers does not come for free... but this is the nature of insurance," said Philip Lowe, speaking at the annual dinner of the Committee for Economic Development of Australia.
The governor went on to explain that when implementing buffers, a premium is paid for "protection against future uncertainties" and
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