The challenge we face is to fully capitalise on these fundamentals. If we can do this then I am confident that we can, once again, experience strong growth in real incomes in Australia. Monetary Policy I would like to finish with some remarks about monetary policy.
As you would be aware, the Reserve Bank Board lowered the cash rate in June and July to a new low of 1 per cent. Financial markets are pricing in further reductions in the cash rate over the next year. Our decisions – and the expectations of investors about the future – reflect both international and domestic factors.