Inflation

[Value Hunter]

And question is why can not Australian get a 20y loan on a fixed term if it is available elsewhere? We..aka RBA sell long term debt/bond.
That would benefit everyone , smooth inflation but i believe it is due to our currency risk and the lack of self funding abilities.
We have billions in super, some supposedly in low risks fixed return.
Would that help inflation, probably a bit but it would also help home owners to sleep better at night

Part of the reason for this is the regulators in Australia are not supportive of having ultra long term fixed loans because it adds systemic risk to the banking system.

The Australian system disperses the risk to millions of homeowners whereas in other countries such as U.S.A, some European countries etc the risk is concentrated into large financial institutions, pension funds etc that buy those 30 year fixed rate mortgage backed securities.

That can cause a buildup of systemic risk in their financial system when too big to fail institutions blow up their balance sheets in a high inflation environment by owning mountains of 30 year fixed rate bonds.