Having done that, let me move on to look at the current position. The immediate background at this point is the review of card-payments reforms that the Board undertook in 2007–2008. In thinking about the approach taken in that review, it’s worth keeping in mind that the Reserve Bank has described itself as a reluctant regulator.
Our general mandate with respect to the payments system is to promote efficiency and stability. For reasons that I’ve already described, that includes taking measures to stop fees from rising too far above efficient levels. But our preference is to do that, when we can, by promoting competition rather than by direct regulation of fees.