OZ
The RBA is screwed. They no longer have control over rates the banks charge. The banks will raise their mortgage rates when their costs increase and their costs are increasing.
APRA from what Ive heard is now asking the banks to loosen their lending practices because it is thought they tightened too much. They are also asking the banks to now lend more money to investors on interest only loans.
This is in stark contrast to a couple of months ago when they were accusing banks of reckless lending practices in interest only loans.
There has been a 180 turnabout. The RBA, APRA and the government are frightened that their property bubble is bursting, and it is. IMO they are attempting to re inflate the bubble probably in an attempt to put a floor under the property market.
The MSM is touting this as a cure for the property downturn and promoting it as prudent moves.
