An increase in interest rates has led the Reserve Bank of Australia to record a loss of $6 billion for the past financial year.
The loss was outlined in the RBA’s 2022/23 annual report released on Thursday.
This follows a loss of $36.7 billion in 2021/22, which was mainly linked to bond repurchases undertaken as part of its economic support package during the COVID-19 pandemic.
“The bank continues to operate with negative equity, with the negative equity position increasing over the past year to $17.7 billion,” now-ex-governor Philip Lowe said in the report.
“This does not affect the bank’s operations or its ability to perform its policy functions.
“Nonetheless, the board will seek to restore the bank’s capital over time through the retention of future profits, rather than paying these as dividends to the government.”
Dr Lowe finished up as governor in September and was succeeded by his former deputy Michele Bullock.