That has made borrowers appropriately cautious in ensuring that their borrowings are well hedged, and can help the economy adjust to adverse economic shocks. Unusually among heavily indebted countries, we are readily able to tap international capital markets in our own local currency.
We have a sound macroeconomic policy framework, a government committed to running fiscal surpluses, and a relatively low level of government debt. We do not have a large bubble in asset prices just waiting to burst. Our banks are well-capitalised and well managed, and have very low levels of non-performing loans by international standards.