Via The Australian comes UBS’s George Tharenou:
“My framework here is that the regulatory tightening is accelerating, so the only effective policy lever available in the near term to stimulate the economy is the cash rate,” he says.
“There’s a view that the royal commission was benign because it didn’t change law, but we never expected it to. All that’s happening is that the loans not compliant with responsible lending laws and regulation are stopping and people’s maximum borrowing capacity has been reduced.
