hesitation on the feb rate rise, page-26

You make some excellent points fall guy.

The property bubbly has been fueled by banks ,& others lending almost 100% of value.
By lowering their % lend to maximum 70% would slow things up. Totally logical common sense, & would fix a lot of "stuff ",but as I have pointed out earlier, economics is not a precise science.
Its all about opinion, politics, socialist V capitalist, etc. so we don't usually get the correct decisions.... ( E.G. .. my correct right wing idealism would get the correct decision, against others incorrect left wing idealism... LOL )
Not really, but you get my point.

Dunno bout increasing Govt, charges though f.g.. they already charge too much....
but thats my rt. wing flapping again.

One more thing, what do you mean about the "geriatrics busting the whole economy." are you referring to ME ???
(Shock horror. ) The baby boomers, of which I am one, have bought & paid for our houses.
We aint causing the real estate boom.
Its "other" people.. not me..... or us.

Towie,

Our interest rates, as far as I can remember have always been above USA.
Too low an OZ$ means imported manufactured goods,will become more expensive, & we are sadly, increasingly more & more reliant on imported consumer items. (write your own list here )

Japan has been in deep economic trouble with zero or near zero interest rates for quite some time.
Sure a higher OZ $ creates problems for our export industries, but I see tarrifs imposed by USA, EUC & others as being a bigger barrier to exports than a stronger OZ $.

Re Gvt policy decisions

I think the 1st home buyers grant was a good thing & helped keep our economy bouyant when things worldwide were generally struggling.
Probably time to finish it now, but hey ! "its election time" ..
so it won't happen.

The truth is the interest rate can be "tweaked up" & people will cop it as a "return to normality."
( & in reality ,rates will still be historically low )

So,
Forget logic.
Forget common sense.
On balance, the only thing left is the interest rate thingy.

Maybe we could all form the " Hot Copper Party" & fix up everything. LOL

Bendigo