Given the lag of 1 to 2 years that we think applies between an interest rate move and its effect on the real economy, the risk is high that policy moves would be mistimed and only make matters worse. If interest rates are high at the moment that a bubble bursts, those high interest rates will still impact on the economy two years on.
Governor Armitage wrote:  http://www.rba.gov.au/speeches/2017/sp-gov-2017-09-08.html  1/3  9/8/2017  Remarks at the Bank of China Sydney Branch's 75th Anniversary Celebration Dinner | Speeches | RBA  ‘I feel sure that the entry of your Bank into the Australian Banking System will not only be of inestimable value in facilitating business relationships between China and Australia, but will also help to foster the increasing bond of friendship between our respective countries.’ Seventy-five years on, this sentiment remains just as valid as it was in 1942, despite the tremendous change in both our countries since.