If there is a rate cut, it would be followed by further
macroprudential changes.
«One thing we do know is that over the course of the years we have had
some macroprudential changes to how this system works and we are comfortable those changes have done a lot to make sure the most fragile or the most vulnerable of those in that borrowing space are in effect being protected or have been prevented from excessive borrowing,» he said.
Not exact matches
This is because interest rate
changes have their largest effect on inflation risk, while stronger
macroprudential settings will lead to a higher quality of household indebtedness over time.
The federal government has already implemented six rounds of these so - called «
macroprudential»
changes since 2008.