Draghi Cuts Mortgages 17,000 Kilometers Away: Australia Credit

European Central Bank President Mario Draghi’s shift toward quantitative easing is reverberating 17,000 kilometers (10,500 miles) away in lower Australian mortgage rates.

Draghi’s Aug. 22 comment that he will “use all the available instruments” to stabilize prices added to an already benign interest-rate environment that sent relative yields on Australian financial debt to seven-year lows. That’s helping banks trim mortgage rates, providing the Reserve Bank of Australia with a de facto easing even as investors bet it will keep policy unchanged tomorrow for a 13th month.