Interest rates should be cut BUT our rba,state and federal govt need to stop relying on rising house prices (wealth effect} to make themselves (the economy) look good. The rba should at least do what the NZ central bank has done and place lvr restrictions on mortgage lenders strengthening bank balance sheets,going by history the rba will probably do this in a couple of years. The federal govt should put restrictions on foreign residential buyers. The pathetic nsw govt should stop giving foreign residential buyers the $5000 housing grant. We really do deserve what is happening to our economy.
