The RBA raised rates - the OCR - in Feb and March of 2008. They did not lower them until September 2008 at all read your history kingy.
Finally after the yield curve had inverted in late 2006 and debt markets were in disarray for all of 2007 and right into 2008 - even the equities boys started tanking stocks through 2008 - did the idiotic system, the Central Bank of Australia wake up. And even then only after Lehmans fell did they react. So keep your face and do not talk to me about Stevens please.
After the massive deficit spending of 2008, 2009 and into 2010 calender years the RBA started raising rates to 'cool' our economy as government spending and stimulus in China drove our GDP. We had our government stimulating - foot on the accelerator and the RBA with their foot on the brake by raising rates - the OCR... SIMULTANEOUSLY! FOR GOD'S SAKE.
We are the lucky country however and resources will rise this is a correction over the coming months. Volumes will pick up mainly elsewhere because we raised costs here unnecessarily - but commodity prices will not rise as much in this cost structure. Maybe with inflation to lower benefit.
We are hardly lucky however with this government and Keynesian economics ruling fiscal policy the model is broken. Our banks are correctly labeled by the Variant report, not Stevens kingy study this closely for your own sake.
Caveat Emptor - buy property at your own risk here. I have make my views well enough; our banks are at risk and baiting will not fix this even slightly.
