The high levels of investment and commodity prices have been associated with a high value of the Australian dollar. This has clearly caused some difficulties for parts of our economy, including the manufacturing, tourism and education sectors. But from an overall macroeconomic perspective, the appreciation of the exchange rate has played an important stabilising role.
We did not ask for permission to take exceptional measures on 9 August 2007 to confront the first waves of financial turbulence! We were criticised by Germany and France when we refused to lower rates in 2004, and by ten out of 12 countries when we increased them in December 2005. All our non-standard decisions have been taken in complete independence.