I think it is all in the timing.

Consider this chart of the AUD to the USD over that time:

http://www.xe.com/currencycharts/?from=AUD&to=USD&view=10Y

From the RBA interest rate chart linked earlier you get these maximum yearly numbers over the last decade:

    Year    Rate    AUD
    2008    7.25    0.69
    2009    3.00    0.91
    2010    4.75    0.98
    2011    4.75    1.10
    2012    4.25    1.51
    2013    3.00    1.50
    2014    2.50    0.94
    2017    1.50    0.80

As the numbers show, before the GFC and even after the GFC through to 2014 (some 7 years) the RBA kept the rates very high.

Thanks to those high rates the carry trade kept the AUD high, but those high rates also put a dampener on the housing market.

Now during that time most of Australia was struggling, but two mining states (WA, QLD) where doing extremely.

China had created a commodities bubble that saw iron ore prices well over the $100 a tonne.

By 2014 the mining bubble had bursts, so much so that WA, the once booming state was on it's way to recession.

Only then does the RBA then decides to move on rates.

However those 7 years of high AUD has really hurt the local export industry, the tourist sector and the agricultural sector industry.

But even after 2014 the RBA is still slow to cut so the carry trade persists, keeping the AUD stubbornly high.

However, with the rate now at 2.50% and going even lower in the years to come, mortgages are now very cheap and only getting cheaper.

Say goodbye to the mining boom and welcome to the housing bubble.

Might point would be, if they had cut faster after the GFC they would have kept alive the other non mining sectors and then, if they had seen a problem developing in the housing market they could have raised rates to deal with the issue.

Over that time they did the exact opposite.

Looking from the outside I'll be honest you can't have everything. One of the primary aims of a central bank is to control inflation which it looks like the bank has done pretty well.

https://www.rateinflation.com/inflation-rate/australia-histo...

In hindsight it's easy to say what should be done but they really look like they've done a pretty decent job. No economy grows forever and Australia has had a very good run in recent history.

Those inflation figures you quote don't reflect what is actually happening in Australia.

Like most of the developed world wage growth in Australia is flat and has been flat for at least the last decade. So wages growth has not driving up inflation.

However, each time a cyclone hits Queensland that drives up the price of bananas and other fruits, which does drive up inflation.

Add to that the fact you can now buy Australian gas at a cheaper price in all parts of the world other than Australia. Go figure?

Then consider the fact we closed our oil refineries so we could import our gasoline from Singapore.

Strangely enough when the international price of oil goes up (or the AUD dollar goes down), we instantly pay more for our gasoline.

However when the international price of oil drops (or the AUD dollar goes up) the price of gasoline takes weeks to come down. Strange?

Add to that the current joke in Australia where most state governments have privatised their electricity utilities only to see the price of electricity increase by 20% in last quarter.

So yes we do have lots of inflationary pressure here in Australia, but most of that pressure is created by the multi-nationals screwing us with our elected governments providing the lubrication.

Exactly. Everything is easy if you aren't the one driving.

It's especially important to note the difference between the resource driven WA economy and the property driven Sydney/Melbourne economy.