The Reserve Bank is very firmly on hold. The housing market is treading water. Investors no longer have the opportunity to get big capital gains, so they have left the market.

This is a very positive number and it augurs well for economic growth. It's a bright spot.

We've gone through a period where everything has gone right for company profits, but over the past 12 months some cracks have started to develop.

The market has been trying to push a rate cut, but the Governor has remained steadfast, saying there is no scope for lower rates. The Reserve Bank does have a tightening bias and is concerned by wages pressure.

The state's doing it tough. And the fundamentals of weak house prices and record household debt mean there's not much light at the end of the tunnel.

It's at that stage where I think policymakers will start to become concerned (about high petrol prices).