Other financial sector policies will have to be implemented for balancing numerous considerations such as growth imperatives, flow of credit to disadvantaged and preferred sectors, consumer protection, financial inclusion and equity, etc. At times, it becomes extremely challenging to balance these considerations and, if adequate care is not taken in designing and implementing the other financial sector policies, financial stability may be adversely affected.
This is the third time I have had the privilege of doing so, but it is the first time here in Canberra. The world has changed tremendously since my previous address in February last year: a pandemic, the biggest contraction in output in generations, the closure of our borders, a very large fiscal stimulus, near zero interest rates and quantitative easing.