The rba is supposed to be decoupled from government, as such it's not running a popularity contest. There is a lot more to take into account than housing, Alan nailed it with his comment on the exchange rate. I always figured the governments preferred outcome would be a gradual deflation, it cannot stop the train wreck, that would cost a few trillion dollars the government simply doesn't have.
Certainly it may be healthier for the economy overall if pressure eases on commercial rents. My company was having trouble with lease pricing during the boom, let alone now in the midst of a downturn.
