It started so innocently with a little piece from Patrick Commins:
The RBA still has the potential to cut rates further, but by this stage that just looks like a case of indulging in “the hair of the dog that bit you”.
I would argue a more effective and targeted way to support the housing market right now would be to remove the requirement that banks assess a potential borrower’s capacity to repay using an interest rate of at least 7 per cent.
