Inflation is the worst of the worries. The Reserve Bank has indicated it didn't slash rates because it is concerned it will fuel a new housing and household debt bubble.
But by not slashing rates, the Aussie has gone up. With Dutch Disease settling in, we are set to loose a lot of jobs.
I don't believe the RBA can force a more prudent mortgage market - that is a function of the government and APRA. So it only leaves the RBA with one thing to do ......
