Developments in the Sydney market remain concerning, but in the end we did not see these trends as overwhelming a case for a further easing in monetary policy that was made on more general grounds. I note that, on the regulatory front, APRA has announced its supervisory approach to managing the potential risks posed by the rise in lending to investors in housing.
Second, inflation has been within the national government’s target ranges in the last five years and is expected to remain so over the policy horizon, albeit closer to the upper end of our target range.