In general, the MPC attempted to look through the short-term impacts of the shocks and to focus on the second-round effects. Some interest rate smoothing was applied as evidenced in the gradual changes that were applied during the interest rate cycles.
10  For an early discussion of one such episode around the turn of the millennium, see Rankin B (1999), “The Impact of Hedge Funds on Financial Markets: Lessons from the Experience of Australia”, in D Gruen and L Gower (eds), Capital Flows and the International Financial System, Proceedings of a Conference, Reserve Bank of Australia, Sydney, pp 151–163.