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Australian House Prices Keep Rising, but Former RBA Boss Ian Macfarlane Can’t See a Crash Coming

Hindsight is 20/20, so they say, but some big calls do seem to stand the test of time. One of those is the Reserve Bank’s decision to start raising interest rates in May 2002, having cut them only five months previously.

In his statement explaining that rate cut, then-RBA governor Ian Macfarlane had expected the global downturn following the dotcom bust to worsen and Australia to feel the fallout.