That's not the point of the discussion. The point is that because most people in Australia are on variable rates, and because the banks are passing on most of the official rate cuts, most Australians see an immediate benefit from rate cuts. Which is not the case in the UK or USA for example, where most borrowers fix, and where the banks are not passing on as much of the official rate cuts. Because the banks over there are screwed basically, unlike Australia's strong and profitable monopolistic banking sector.
We must be having different discussions then. I'm responding to this:
We did some analysis on the housing market. We tried to look at the fundamental drivers of the house price, and one of them is strong immigration flows, and the other is the interest rate."
Unlike the US, where most mortgages are fixed, three-quarters of Australian mortgages are variable, which means home owners are benefiting as interest rates fall.
This doesn't make sense, homeowners aren't setting prices, sellers and buyers are. Buyers have access to lower interest rates via fixed and variable loans. Both are lower than they were a year ago.
The ability of banks to pass on rate cuts isn't what I was commenting on, neither was the original article.