Global banks warns of tipping point for Australian superannuation as interest rates rise | ABC NEWS

By ABC News (Australia)

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What would it take to put the global economy into a tailspin? The Bank of America, which is worth roughly $US275 billion, and dependent to a degree on functioning financial markets, is asking itself that question. The answer lies in the cost of debt. Low productivity, excess demand, the boom in artificial intelligence, and the Iran war, are all pushing up the cost of borrowing. Despite this, global interest rate increases have not yet done too much damage to share or property markets, or indeed many advanced economies. But Bank of America's head of interest rates strategy, and former analyst with the New York Federal Reserve, Mark Cabana, has estimated the cost of borrowing, or level of interest rates, that would cause financial damage. Mark Cabana recently visited Sydney to, among other things, address the nation's superannuation heavyweights. "I know that they are extremely focused on this question as well of when interest rates will be restricive to growth," he said. Australian supe

Tags: Australia, abc, abc news, news, business news, finance news, economic news, economy, finance, the business, abc news australia, Mark Cabana, interest rates, inflation, Bank of America, superannuation, Reserve Bank, RBA, Federal Reserve, the Fed