Just as the Treasurer writes idiot documents about reforming capitalism, and has a pretend inquiry into the RBA, which explicitly excludes APRA. Changing the interest rates used in loan serviceability tests could increase borrowing capacity in a higher interest rate environment. “Keeping the serviceability buffer at 3 per cent now risks amplifying the housing credit growth downturn and creating more downside to property prices and activity. And I thought that the RBA was raising interest rates to “constrain credit growth”, as well as sink house prices to suppress demand so that inflation comes down. All APRA will do is lift interest rates even higher, hammering household income harder, which will then be blamed upon the new and soon-to-be former RBA governor.

Source: The Guardian February 15, 2023 02:34 UTC