The various monetary policy actions have led to a significant increase in the size of the RBA's balance sheet from $ billion in February to $ billion currently. I will spell this out in more detail shortly.
In those countries, the reduction of the risk premium and perceived policy stability will also encourage credit expansion. While from a macroeconomic point of view all these developments may seem quite  BIS Review 13/2007  3  predictable, there is a fear that both borrowers and lenders in these countries may not have an adequate understanding of the risk they are taking.