This increased activity is boosting employment in the sector and having flow-through effects to spending on homewares and related items. BIS central bankers’ speeches  5  The exchange rate channel of monetary policy is also working. There are some signs that the depreciation of the Australian dollar is boosting domestic activity, with net exports of services increasing strongly.
Also, in our liaison program a number of businesses have reported that they see the lower exchange rate as opening up new opportunities. In time, we should see the effect of this on domestic production and spending. Monetary policy is, of course, also working through the other channels that I discussed earlier, even if the effects are somewhat different from those in the past.