"For an insight into how much control over international borrowing costs the Australian banks really do have, look at how they resisted a Royal Commission for many years. Fought it tooth and nail!"
Now the issue is no longer about the RBA, but about "how much control over international borrowing costs the Australian banks really do have" which is the same as asking about how much control our beef exporters do have over beef prices, which everybody knows to be none because:
"A small open economy [and we are one], abbreviated to SOE, is an economy that participates in international trade, but is small enough compared to its trading partners that its policies do not alter world prices, interest rates, or incomes"
"Noting the RBA essentially protects the interests of the banks, just look at how pathetic they've been on helping first home buyers. They note the issues and do almost nothing about it."
The RBA is the bank of last resort to the Australian Government and our banking system and in its mandate there is nothing to oblige it to help first home buyers, except perhaps indirectly through the targeting of full employment and price stability. Ironically the only mechanism that can be used by the RBA to help home buyers, interest rates, is a mechanism that according to Dolcevita the RBA does not control.
"THEN the big 4 banks realised they were being perceived by overseas lenders as a higher risk given the allegations (particularly fraud) so they faced higher interest rates."
