I have a theory that the easiest job in Australia is to be the head of one of big four banks. On day one of my employment as CEO I would do two things. First and foremost make certain they had the correct banking details so that my grossly inflated salary went into the right bank account. i would then send out a memo telling everyone to do exactly the same thing as they did last year. There is to definitely be no innovation and no customer care because that had worked so well for the past 50 years. I would wish everyone good luck and I would see them in a year to repeat the process.
However, my opinion is shifting and there is a new contender – being head of the Reserve Bank of Australia. I have come to this decision based on the fact that it has been 2528 days since the RBA last made a decision to raise interest rates and 456 days since there was any change at all. I tend to discount the endless cycle of interest rate cuts as being non decisions since rolling down hill is always much easier than walking up hill. You can get a sense of the inertia around interest rates with the chart below.
I find the current interest rate environment very interesting because of its lack of historical parallel. However, in life all things are governed by the simple maxim of regression to the mean. Sooner or later interest rates will move back towards their long term historical average which is about 5%, which should make it interesting for all the property investors who have already spent their unrealised gains.