As I said at the beginning, a significant issue for us now is gauging how much more sensitive consumers, and the whole economy, have become to changes in interest rates. This is particularly important right now because the economy will require higher interest rates over time to meet our inflation goals.
Given current levels of household debt, we expect that moves in our policy rate will have a stronger impact in cooling demand than they did in previous years. But this is a significant uncertainty—the sensitivity could be larger or smaller than we expect.