Why is there such a struggle to keep interest rates low? It is...

  1. 197 Posts.
    Why is there such a struggle to keep interest rates low? It is always a struggle to go against a free market which is demanding interest rates go higher as nobody wants to lend in this risky environment unless they get decent interest. So instead the govt pressures the RBA to keep interest rates low which will further inflate the housing bubble and long term making interest even higher as loans will become even more riskier when defaults increase.

    If property investors were so comfortable with their investment they would need to pray each day that interest rates remain low IMO
 
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