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True. :) Its just the new norm, at least for the medium term. Cash rates at 6%+ won't be around for the medium term - unless there are some serious drivers of growth/prices that come from somewhere unexpected. Also, central banks around the world have shown that you can continue to use...

With some banks yes (especially those out of line with the market), some don't move on their fixed rates.

I've said it before on SS, but I think credit will be reigned in. Cash outs area the obvious are where i forsee tightening (and it has already begun for some lenders). From the RBA's angle, they want to stimulate activity, not prices. Price rises in housing transmit into higher consumption...

Re serviceability, APRA have indicated the 7% figure on their December letter to the banks. I think what you'll see is some of the lower serviceability lenders improve, whereas the higher serviceability lenders (Macquarie) just build some breathing space.

This would be great! Most policymakers have been trying to push this policy mix for years, in Australia and around the world. Difficult to do, especially from a government that came in with a 'debt debt debt = bad bad bad' mantra. If you gave Hockey a clean slate and a willing public...

Their variable rate has always been poor. They are near market leading for their fixed rates though. They want to ensure that everyone at MEbank is on the same rate ('bank fairer'), so there's legacy issues associated with reducing the variable in line with others. Cheers, Redom

Plenty of ways to stimulate growth, monetary easing is one way to do it to have shorter run impacts. Can simply spend more and tax less (fiscal), have structural adjustments (labour market reforms, competition, tax, trade, etc). Although in today's political climate, it does seem like...

Hahah quality.

This view is one from people with a large bias towards housing. In the real world: Wage growth is at its slowest in decades. While generally tied to longer term productivity indicators, this has an obvious impact on inflation. Unemployment is at decade highs. Business investment...

Yep - given current market conditions where there's significant competition and room for discounting, a large chunk of it should be passed on.

Credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months. The Bank is working with other...