Part of the challenge here is that many observers assume the main objective of macro-prudential policy is to stabilise asset price and credit growth rather than build financial system resilience. Fifth, a good infrastructure is required to support macro-prudential policy. The Reserve Bank has invested heavily in better measurement and analysis of housing and rural credit risk.
This has had positive spin-offs for prudential policy more broadly. International Experience The countries we look to for lessons about our own policy are those with similar banking systems and with a propensity for housing cycles – such as Australia, Canada, Ireland, and the UK.