The data clearly show an increase in the level of approvals for foreign residential purchases over time, but it is difficult to know how much this has boosted net demand for Australian housing.
This helps markets, businesses and consumers to better formulate expectations about future movements and adjust their actions accordingly. We have to admit that, in times when the standard monetary policy instruments have been bounded, there is a need for a supplementary tool to help preserve market expectations, primarily about continuous accommodation in the economy.