The rates you pay on your mortgage is strongly correlated with the RBA interbank rate. You are absolutely right, the government could increase the GST to reduc

The rates you pay on your mortgage is strongly correlated with the RBA interbank rate. You are absolutely right, the government could increase the GST to reduce demand. That would be political suicide, but fiscal policy absolutely can play a role. The government has abdicated from this, so it can blame the independent RBA and banks.