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Australian macroeconomic risk
A deterioration in macroeconomic conditions of the Australian economy may lead to a higher proportion of borrowers with underlying loans being unable to meet their loan obligations. In particular, higher levels of unemployment, high levels of inflation and increases in the RBA Cash Rate Target could negatively impact the ability of borrowers to service their debt obligations, leading to an increase in arrears and defaults on the underlying loans, which may lead to you suffering financial loss.