the RBA does, and I think people should listen, as they seem to be in charge of setting our interest rates.
BG, using a crude graph that does not show the true RETAIL cost to morgage holders is very misleading given the structural changes that banking margins have gone through on top of base rates over your time period.
your graph is suggesting a response based on misleading data as it applies to the people who are actually paying the interest.
when the RBA lifted rates to 4.5% this is what they had to say...
''The (RBA) Board expects that, as a result of today's decision, rates for most borrowers will be around average levels,'' RBA governor Glenn Stevens said in a statement accompanying today's decision.
''Before they were talking about inflation around the middle, so they have clearly upgraded their inflation projections. They are talking now about average, that interest rates are back to average.''
