Climate change will affect the way the Reserve Bank sets interest rates and the stability of the entire financial system, with incoming bank governor Michele Bullock warning it will affect property values, the way we work and the location of our communities.
Bullock, speaking at the Australian National University in Canberra on Tuesday evening, said increased variability to Australia’s climate would make it more difficult for the bank to set monetary policy.
Central banks around the world are increasingly focused on the possible fallout from climate change in how it will affect business operations, the risks faced by the finance sector such as insurers, and the possible collapse of valuations for certain assets.