Of concern to us during the year was the persistent rise in domestic consumer demand which in recent times has been increasing at a year-on-year rate of around 8 per cent. This consumer exuberance has been financed by high rates of domestic credit extension and has led to record levels of consumer indebtedness of around 70 per cent of household disposable income.
In addition, the Committee is so large – in effect nineteen people – that strong leadership is required to construct a policy position that can command a substantial majority and to present a coherent rationale for that policy to the public. But in my experience, the other members of the Committee are also important for good policy.