A-ha

When the Reserve Bank drops interest rates, this stimulates home mortgage borrowing because loans are cheaper and everyone wants as much property as they can buy/service.

Because those borrowing are a form of quantitative easing (the banks make that money up out of nothing), this puts downwards pressure on the currency.

Even though the borrowings are spent on real estate, which is non productive, the sellers get to spend their proceeds. So the cash hits the market and devalues the currency.

Thus easing imports and favouring exports.

This helps the economy.

It’s taking me a while to join all those dots.