RBA Warns AI Stock Correction Could Cut Spending 2.4%

Australia's central bank is analyzing how ownership of volatile equities among the public creates vulnerabilities in the domestic economy. The Reserve Bank of Australia (RBA) warns in internal documents that a sharp correction in AI and other shares could reduce household spending by 2.4%. This risk exists because more than one in 20 households in the country now hold AI stocks, making consumption sensitive to market downturns.