Could see a repricing of assets if rates rise more - RBA's Dubelle

The Reserve Bank of Australia's (RBA) Deputy Governor Guy Debelle gave some comments about equities and their values in relation to interest rates while giving a speech on risk and return in low interest rate environments at the Financial Risk Day event hosted by the Centre for Financial Risk in Sydney.

Key highlights:

• Global asset prices depend on rate structure remaining low.
• Equity prices assume global economy can grow strongly without pick up in inflation.
• Investors should question how long such a "benign conjuncture" can last.
• Global monetary stimulus will unwind as world recovers, which will lift short-term yields.
• Debelle expects to see repricing of assets if rates continue to rise.
• Recent spike in equity volatility a "small example" of what could happen.