The RBA needs to take care of business

Current financial and tax policy settings have channelled credit away from business towards property investment -- and the economy is struggling because of it.

The growing divergence between property investment and business lending highlights the challenge ahead for the Reserve Bank of Australia and the public sector.

Australia’s economic rebalancing isn’t going quite as planned and, with business lending easing and investor activity skyrocketing, the RBA will have a lot to think about over the holidays.

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