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IRs may very well be an accelerator/decelerator; but not the only one. Remember GFC? rates down, non rate bank lending criteria up, buyer risk aversion up. Fast forward to today. Rates on hold. housing finance down. INVESTMENT HOUSING - TOTAL Considering the Aust. popn has grown ~11%...

ask Glenn Stevens and his Keynesian mates. they obviously think us yobs earning less than $200k pa salaries will keep buying bananas no matter their price, or the bank cost to borrow. same for houses. :) makes me wonder what's the purpose of a central bank post banking deregulation. got to be...

when the RBA put up the cash rate -> banks follow -> their rate related fee revenue goes up -> which contributes to a rise in CPI -> which is grounds for the RBA to raise the cash rates, again. yeah the household saving rate is an interesting thing. it is back to 11%, last seen in the late 80s...

I think the RBA's task is hard because they are too subversive and oafishly Keynesian to admit interest rate rises don't control inflation. Consider the main components that increased last quarter's cpi : - food up 1.4% due primarily to a cyclone's effect on bananas which went up 377% in the...