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RBA warns an AI stock slump could hit Australian household spending

The RBA estimates 5.4% of Australian households’ financial wealth is in AI stocks, with nearly 90% of that exposure held through overseas holdings.

Reported · Written up by our desk · Emerging Markets

The Reserve Bank of Australia warned that Australian households have meaningful exposure to artificial intelligence stocks, leaving consumer spending and the broader economy vulnerable if global AI equities sharply correct, according to internal central bank documents.

In a Sept. 1 paper, the RBA said the connection extends beyond direct stock ownership, with superannuation funds providing a major link and most of the holdings concentrated overseas.

The RBA estimated that 5.4% of households’ financial wealth is held in AI stocks, with 1.7 percentage points from direct equity holdings and 3.7 percentage points via pension funds, and it said foreign exposure accounts for almost 90% of households’ AI holdings.

The central bank said a selloff in global AI stocks could erode household wealth and weigh on consumption at home, potentially turning a market correction into a broader economic shock, Bloomberg reported.

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