Treasurer Frydenberg met with RBA Governor Lowe today. It seems it was such an important meeting, a media announcement was warranted.
So says Treasurer Frydenberg:
The combination of the tax cuts, the interest rate cuts, the infrastructure spending, the regulatory changes that APRA have made which are going to provide a boost to the housing market
Not sure why a further boost to housing market is good policy, but do the APRA “changes” include the arbitrary and capricious $500 million additional capital hit on WBC and NAB announced today … putting upward price pressure on them? Oh. The charge was based on a “culture report”. Perhaps re-education camps are the next APRA regulatory tool.
So says Governor Lowe:
The outlook is being supported by our lower interest rates, by your tax cuts, by higher levels of investment in infrastructure, by a pickup in the resources sector and the stabilisation of the housing market in Sydney and Melbourne.
Our lower interest rates. Your tax cut.