Banking consumer advocate Peter Mair writes:

The blow out of housing prices driven by bad tax policy settings is one
substantial blemish on the reputation of Ian Macfarlane, who will retire as RBA
Governor in August. Payments system policy is another.

The front page of today’s SMH was somewhat incredible running the (qualified)
line that the Big Mac had been an important influence in ending the boom in
house prices, especially in Sydney.

While the mess has yet to really crystallize, and the post mortem is yet to be
done, one can only wonder why that RBA did not blow the whistle on the tax lurks
driving house prices higher and higher – its submission to the Productivity
Commission was not made until it was all too late.

The RBA’s “independence” – and perhaps professionalism – was found wanting
and the Big Mac cannot be excused.