As for New Zealand, we need to see realisation amongst borrowing households and lending banks that this recent period of cheap international money has been unusual, and at some point will revert to more normal financial conditions. That means thinking about other eventualities ahead, and in some cases showing less exuberance. Monetary policy always impacts with long and variable lags.
Those lags have been longer in this cycle, but as household debt grows the OCR becomes a more potent policy instrument. We are continuing to assess alternative measures that might support the OCR, working with the relevant government agencies.