The RBA's Moral Suasion on the Housing Bubble

The RBA was concerned about the housing bubble, has been in the last few years. They've basically tried to use moral suasion to get people to perhaps back off a little bit from buying houses rather than raising interest rates. That's ultimately what macroprudential policy is for and why we have institutions like APRA. Unfortunately, they were a little bit late to the party. But at least I think it was the right idea and taking a bird's eye view. And that, of course, is also what causes the fallout and makes it so costly when the asset price bubble collapses.