Still, these adjustments will be far less demanding than if there were a serious negative economic shock, especially if financial vulnerabilities were allowed to continue to grow unchecked. Now, the fact that household spending is behaving roughly as expected gives us more confidence that we understand what is happening in the economy.
The Reserve Bank has already indicated that it will be conducting a full review of bank capital requirements over the coming year. We will consider whether macro-prudential overlays have a role to play as part of that process. 6. Conclusion  In conclusion, the Reserve Bank is concerned about the risks to financial and economic stability inherent in the growing housing market imbalances.