It  6  BIS Review 21/2004  increases the chance of more balanced growth outcomes for the Australian economy in the period ahead, and therefore of further prolonging the economic expansion. What could go wrong? There were two big risks to this generally favourable outlook.
The first was the excessive growth of overall credit, especially to the household sector for housing purchases, and the consequent rapid increase in housing prices. The second was that the exchange rate could be pushed quickly to an unrealistically high level.