In my opinion, I dont thing that the RBA will have much say either way on which way interest rates will go.
I know that sounds impossible as it's them that sets the rate for Aussie banks but international wholesale funds are going to be going be in demand throughout the next few years as the soverign debts of the various nations through out the world are all competing for more funds and that in turn will force up interest rates regardless of wether they are good for Aussie house prices or not.
Australian Banks borrow billions from overseas. The world demand for cash will force up interest rates and if you think that because we have higher mortgage amounts then we will be spared the higher interest rates cos 1 or 2 per cent will have the affect on the housing market the RBA wants..... then you still believe in fairy tales.
They dont care... and maybe they are sick of the tall poppy avoiding the crisis so far
