Over recent times, one issue that the Reserve Bank has focused on is the build-up of mediumterm risks from growth in household debt persistently outpacing that in household income. Our concern has been that, in this environment, a small shock could turn into a more serious correction as households seek to repair their balance sheets.
While different regions and sectors adjust differently, and while these adjustments can be painful, they allow us to maximize the benefits of our rich energy endowment – and ultimately everyone gets the gift.