BIS Review 12/2006  5  Australia's Domestic Economy and Monetary Policy There is not very much I can say that is new on the domestic economy, given the recent release of our Statement on Monetary Policy and our appearance before the House Economics Committee last week. Let me reiterate the main themes.
Graph 5  Growth in domestic demand in Australia has moderated somewhat over the past year and a half. This is not unwelcome, as continued expansion at an annual pace of 6 per cent, which we saw for several years, was unlikely to be able to continue without causing overheating. As it was, some individual sectors were overheating at times.