There is always a period in which people can see that many of the conditions for expansion are in place but aren’t yet fully confident it will happen. Nor is it confined to Australia. The gap between financial risk taking and “real economy” risk taking is seen globally at present. It is reasonable to expect that, at some point, this will change.
Costs of keeping interest rates low over a long period  Maintaining our medium-term focus is particularly important in the current environment. Short-term volatility is extensive and uncertainty remains unusually high. Thus, central banks need to avoid just looking at the short-term consequences of a somewhat tighter monetary policy stance and take a longer-term perspective.