Blue. Much too simplistic. The cash rate was 22%. Banks had mortgage rates limited at 13.5% by Liberal Government fiat, which no longer applies (and which is one of the reasons that both Howard and Costello are on the record as acknowledging that the changes made by Keating created the economic environment which has enabled Australia to perform so well economically under the Howard/Costello regime). At that time banks would have lost a fortune if they had given mortgages at 13,5%. Instead, they required personal loans in conjunction with the mortgage which were at much higher rates. Howard is a master of spin.
