XJO - Bear Posts only (Factors which might cause the markets to fall), page-17018

The RBA appears to be determined to keep interest rates low. It is not just pollies who hold real estate portfolios. Also RBA staff. IMO, a massive conflict of interest. Low interest rates make property portfolios more profitable - lower interest payments, higher capital gains as property prices rise, and higher rental yields because rents rise as property prices rise.

If inflation rises again, I think that the RBA will find a way not to raise rates. For example, they might raise their inflation target to 3.5%. The RBA's inflation target is already 50% higher than for comparable central banks, and as far as I know there are no politicians who have ever questioned this highly questionable anomaly.