For example, in recent NFIB surveys, the net percentage of respondents who expected their sales to increase rose to levels not seen since mid-2007 (figure 3). More generally, small business owners surveyed by the NFIB indicate that they currently expect business conditions to improve in the near future.
Another way of approaching the question is to ask why we at the Reserve Bank were able to accept this continuation of high growth and depreciating exchange rate without having to tighten monetary policy (in fact, being able to ease it slightly at the beginning of this month). The answer is that the combination has not to date seriously threatened our inflation target.