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As Liar Morrison mulls his great hope of unwinding macroprudential, the RBA head has other ideas:
Dr Lowe said: “When I talk to my overseas peers and say more than 40 per cent of new loans in the country were to borrowers who didn’t have to make a single dollar of principal repayment, they say, how? Why would you allow that?
”It didn’t feel right to me. It felt like it was building up risk in the system so that was addressed and I would hope there would be a permanent element of that.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.