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A key theme on MB over the past few years has been the willful neglect of Australia’s financial stability regulators – the RBA and APRA – who have ignored the build-up of housing imbalances threatening the Australian financial system and economy.
While their cousin across the pond – the Reserve Bank of New Zealand (RBNZ) – was warning of the risks building in New Zealand’s housing market (particularly Auckland), which culminated in the establishment of macro-prudential speed limits on high loan-to-value ratio (LVR) mortgage lending in October 2013, the RBA was busy arguing against such measures, ultimately describing them as the “latest fad”.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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