March’s financial turmoil was triggered after losses on long-term fixed rate bonds led to an evaporation of depositor confidence (effectively a digital depositor run) and the sudden collapse of US$212 billion tech‑lender Silicon Valley Bank in the US on 10 March. The volatile macro conditions contributed to the RBA deciding to “pause” after ten consecutive rate rises at 3.60%. The RBA commented that the pause was to enable them to assess the impact of its previous tightening on the economy, stating that further tightening may be required.
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