banks still need to make money.
look at the facts, how low are rates in the US? and the banks still charge home lenders how much? 6%, 12%
if house prices drop, and people default on their loans, thats a lot of money banks start to lose on their profit reports.. they need to make money to stay in the game as a result, watch the interest rates go up.
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- this will make the rba sit up and take notice