RBA Email 7 March 2008
From: RBAInfo [mailto:RBAInfo@rba.gov.au]
Sent: Friday, 7 March 2008 11:55 AM
To: Harkness, Leigh
Subject: Forecast inflation
We haven't found monetary models to be particularly informative for inflation over our forecast horizon.
As for the relationship between new lending and outstanding credit, a recent example of our work in this area, examining borrowing for housing only, was published in a Bulletin article last year - see http://www.rba.gov.au/PublicationsAndResearch/Bulletin/bu_jul07/loan_app_repay_house_cr_growth.html
I hope this helps.
The first sentence in the above email was written in response to the following graph.