RBA don't adjust rates to control the property market.
To date the drop in interest rates has been aimed to increase spending but what has happened is that people have used the low interest rates to decrease debt which does little for the economy. It's only been more recently that retail spending has gone up.
latest data shows new home construction is surging, now that put positive growth in the economy but it is early days.
"If the owners of those 40% of new loans written to investors in the past year decide to pull out god help us. We may have to increase negative gearing tax breaks to keep them in the market."
Not sure why you would think that, most people (investors & home buyers) know that property is a long them proposition. It's not like the share market where you buy in one week and sell the next for what ever reason
