The head of KPMG's financial services group says the Reserve Bank probably doesn't want to use macro prudential tools, such as restricting mortgage lending to those with small deposits.
John Kensington says he thinks Reserve Bank Governor Graeme Wheeler would prefer it if the banks behave responsibly so he doesn't have to impose such restrictions.
"So really what they're saying to the industry is: please be prudent in your lending we don't want to have another bubble and we don't want to have to intervene, but if you make us we will."
If the Reserve Bank does implement a strategy, Mr Kensington said the questions are what it will be and how it will do it.
