Re-pricing of assets could dampen global recovery, RBA deputy warns

guy-debelle

Some financial assets may be mispriced in global markets, which risks “dampening” recovery worldwide, a deputy governor at the Reserve Bank of Australia said today (March 16).

“If interest rates continue to rise without a similar rise in expectations about future earnings growth, one would expect to see a repricing of other assets, particularly equity markets,” Guy Debelle said.

While such a repricing would not mean “a major derailing of the global recovery”, Debelle said he believes it could

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