the regulatory reforms that have already been broadly agreed, but being wary of adding further reforms to the work program. absent some major new development, which brings to light some major reform need not hitherto visible, to task the regulatory community and the financial industry with further wholesale changes from here would risk overload. lest this be considered too weak a position, let us remember how much is being attempted. and since we are already seeing the need to “ tweak ” some earlier agreed proposals, it is surely clear that the details of implementation should increasingly be our focus over the next few years. the g20 will need to remain open to the possibility – the likelihood even – that as experience is gained with implementation and we grapple with the inevitable difficulties, and as we learn more about how the financial the relevant standards are the fsb ’ s key attributes of effective resolution regimes for financial institutions. work is also underway by cpss - iosco to establish how best to apply the key attributes to financial market infrastructures. bis central bankers ’ speeches system is likely to operate in a new world, we will want to make occasional adjustments to the rules. none of that ought to be seen as a retreat from the high level objectives that have guided efforts to date : the desire for a more stable, more resilient and simpler financial system, that is better able and more inclined to play its “ handmaiden of industry ” role and better able to withstand failures of individual institutions. but in pursuing these goals, it is important that we : • strike the right balance between more regulation and more effective enforcement of existing regulation. inadequate enforcement and supervision was as big a problem as deficient rules • recognise the cross - border aspects of the financial system, with the associated need for cooperation and, yes, compromise. recognition of the legitimate interests of smaller markets is clearly of importance to australia but many other jurisdictions as well. this often coincides with the role of pushing for a principles - based approach instead of a one - size - fits - all heavy - handed, rules - based approach. it may also involve working to develop a “ regional voice ” on some issues • consider the combination of reforms in their entirety, and keep a lookout for unintended consequences. given the breadth and speed at which reforms have been introduced in recent years, careful analysis of how the various initiatives will interact is becoming more important. keeping the regulatory structure fit for purpose across a broad range of jurisdictions around the world is in fact a

##s food, energy and fuel. sources : abs ; rba ; refinitiv ; u. s. federal reserve. conclusion the cash - flow channel is the obvious way in which monetary policy is transmitted to aggregate demand and inflation in australia. compared with earlier episodes of rising interest rates, this channel has been operating with a slight delay given the high initial share of fixed - rate loans. but around half of all loans that were fixed at a low rate have now rolled off, and most of the rest will do so over the next 12 months. required mortgage payments are at a record share of household disposable income and will rise further as more fixed - rate loans expire. the cash - flow channel is felt acutely by those with variable - rate debt. but there are other important channels of monetary policy. in particular, the rise in interest rates has increased incentives to save. this is true even for households that had built up a lot of extra savings during the pandemic. households with debt also have an incentive to save more ; some may be able to pay down their debts ahead of schedule or at least run down their savings buffers more slowly than otherwise. these and the other channels of monetary policy are slowing the growth of demand and contributing to a decline in inflation. the lags of transmission mean that some further effects of rate increases to date are still to be felt through the economy, which will provide further impetus to lower inflation in the period ahead. meanwhile, the board is paying close attention to economic developments here and overseas, and some further tightening of monetary policy may be required to ensure that inflation, which is still too high, returns to target in a reasonable timeframe. endnotes [ * ] i would like to thank richard finlay, jonathan hambur, jeremy lawson and jack mulqueeney, as well as a number of staff from domestic markets, economic analysis, economic research, financial stability and international departments for help with this speech. see la cava g, h hughson and g kaplan ( 2016 ), ‘ the household cash flow channel of monetary policy ’, rba research discussion paper no 2016 - 12 ; floden m, m kilstrom, j sigurdsson and r vestman ( 2021 ), ‘ household debt and monetary policy : revealing the cash - flow channel ’, the economic journal, 131 ( 636 ), pp 1742 – 1771. unlike the cash - flow channel, the intertemporal