The Reserve Bank's Difficult Position

I can understand why the Reserve Bank would be very concerned about asset price inflation. But if their only instrument is the overnight cash rate, then they are simply not capable of dealing with that issue. It's highly likely that people who are purchasing property as a speculative asset have got in mind that for some time, house prices are going to continue to increase in double digits. I think the position is, well, it's not diabolical, but it's a very difficult position that they're in.