We also know with reasonable confidence that housing should pick up strongly through the remainder of the year. Looking at the broader picture, the major influence on our outlook is the world economy and, inevitably, the biggest influence on this will be the US economy.
This is an important lesson we learned from the GFC. Most policy makers have now come to realize that having strong individual banks, while that is necessary, is NOT sufficient. Policy makers need to consider the strength and soundness of the system as a whole. Our regulations benefit from consultation with the banking industry and are evidence-based.