This made it necessary to pre-signal to householders the pipeline impact. It also makes it harder to judge the timing of monetary policy moves around the business cycle with as much precision as we might like. Interestingly this is a problem that other central banks overseas are now also starting to worry about, though their economies are at an earlier stage in the cycle.
The collateral problem this caused was that as we tightened monetary policy, the New Zealand dollar looked increasingly attractive to offshore investors. This was by no means the only driver of $ strength (which in the medium term has been more affected by our terms of trade), but for a while it was a significant one.