From Chris Joye:
The once market-orientated RBA now hopes that the bubble blown by its cheap money policies can be cauterised by getting the Australian Prudential Regulation Authority to re-regulate lending via “macroprudential” constraints on credit creation.
Setting aside the fact that the RBA years ago warned that such controls may be ineffective when interest rates are too low, they also have no impact on non-bank lenders that are not regulated by APRA (after the Banksia scandal in 2012 I argued they should be, but Sleepy Hollow was not listening).
