We also need to take into account the effect of low interest rates on people who rely on interest income. A third issue is what is happening internationally with monetary policy. Australia is a mid-sized open economy in an interconnected world, so what happens abroad has an impact here on both our exchange rate and our yield curve.
Re-positioning thrift banking in a changed environment All the positive developments have certainly put us in a good position. They provide us the momentum to move forward but they will not necessarily guarantee further success. Markets are constantly in a flux and the strengths of the past need to be further enhanced to meet the challenges of the future.