Like their counterparts on the commercial side, these models also rely heavily on quantitative analysis. Derivatives: There has been a spurt of derivatives exposures in the off balance sheet exposures. The composition of derivatives portfolio of the banking system has also undergone a significant transformation.
Second, and more specific to our monetary policy mandate, as the data have unfolded, it has become apparent that the unemployment rate that Australia can feasibly sustain is lower than it has been in at least the past 40 years. This is great news. Along with low and stable inflation, one of the Bank's mandates is full employment.