Savers have altered their behaviour to look for returns in slightly more risky assets; asset prices have risen; demand for credit has strengthened; and interest sensitive areas of spending, like some areas of consumption and especially dwelling construction, have firmed. The exchange rate also declined, though not by as much as might have been expected.
The full effects of the very accommodative stance of policy have not been seen at this stage. It will be supporting demand for some time yet. The Federal Budget seems unlikely materially to change the near-term outlook.