There is no doubt that there are some areas of housing - Melbourne and Sydney apartments - where over-supply is pushing down prices, and off-theplan purchasers and some developers are feeling the pinch. But elsewhere the slowdown, if any, has been more muted.
We will naturally be keeping a close eye on these developments to see that the return to a more sustainable rate of credit growth continues. Last year was a difficult period for monetary policy where, for much of the time, excessive domestic credit growth co-existed with a rapidly rising exchange rate.