First, I do agree that the flare-up in inflation in the first quarter is a matter for concern, and that the inflation data bear close watching. Should the rise in inflation show signs of persisting, I am confident that the Federal Open Market Committee will adjust policy as necessary to preserve price stability.
This increase in approvals was broadly based, across owner-occupiers and investors, across states and across different types of lenders. It was also consistent with the improved conditions in housing markets evident in a range of indicators, such as auction clearance rates and housing price growth,  particularly in New South Wales and Victoria.