“…no macroprudential until that space picks up materially”

Alas, I agree that further macroprudential tightening is not imminent given the RBA will bleat but cut anyway and APRA has a corrupt chairman beholden to the Government’s mandate to inflate.

David Llewellyn-Smith
Latest posts by David Llewellyn-Smith (see all)


  1. Low rates plus MP equals feet on both accelerator and brake simultaneously.

    Cut the regulator out entirely by giving rates to the market to decide. Given the choice, humans will [email protected] do the wrong thing.

      • What you’re saying is that rates wouldn’t exist if there weren’t central banks. The Fed was incorporated in 1913 and yet there is interest rate data going back 5000 yrs.

        The market sets the level of rates like it would the price of mushrooms or apples or just about any other good in existence.

          • “Dating back to Mesopotamia in 3000BC and the Babylonian Code of Hammurabi in 1772 BC, customary annual interest rates approximated 20%. After three centuries of Roman stability lowered borrowing costs to the 4% level through 300AD, interest rates oscillated in the high single digits until the early 18th century. The world’s first brushes with the zero bound occurred during the Great Depression and World War II, but even during these black swan events the Fed never felt compelled to employ negative policy rates.”

            I have a nice chart of interest rates going back the full 5000 yrs but am, sadly, prevented from pasting in here.

    • “…equals feet on both accelerator and brake simultaneously”
      So? Never ridden a motorbike? This makes perfect sense sometimes.

  2. Even StevenMEMBER

    RBA is the chair of the council of financial regulators. If they tell APRA to constrain lending to property, then APRA will constrain lending to property. Ergo…