BIS central bankers’ speeches  5  Graph 6  A couple of factors are important in explaining this general pattern. The first is that the large run-up in Australian house prices that was driven by the adjustment to low inflation ended in late 2003.
The Central Bank must ensure that it maintains supervision standards that will ensure a continuing sound financial system. There is no room for complacency or special dispensation for participants in the financial system. Opportunities Despite the risks, the financial sector reforms have created the foundation for stability and growth, which provides an opportunity for the financial sector to introduce new financial products.