Interesting comments GSE, I think Stevens has seen what happened in the US from keeping rates too low for too long and is not going to let that happen here, especially with the very high debt households already have.
As someone who wants to buy in the next few years, I'm all for preventing these excesses, those that don't learn from the past are doomed to repeat it. Yes we didn't get the economic crash this time that the US did, but if we keep letting our personal debt spiral upwards, you can rest assured we'll have it the next time we have a recession.
To those who believe we can't have a recession in Australia, it is possible, it just hasn't happened for a long time (thanks China).
Considering the economic performance of Australia over the past 20 years, regardless of it mostly being a product of the mining boom, there's enough positives there to think that the RBA has in general done a pretty good job.
