If RBA drop by .5% they are fair dinkum about restoring some consumer confidence - thereafter they can drop now and then by .25 and keep that confidence bouyed.
If they drop by .25% as recommended by some turkey commentators it will do very little or nothing to restore consumer confidence and in the long run they will have to drop it a lot more if they had shown some leadership, just for once! A small drop is not going to dislodge the majority and historically our rates are high relative to a lot of our trading partners. A small drop will be symptomatic of a gutless approach and might come back to bite them on the butt.
A good kickstart will be far better psychologically for this economy and will end up the cheaper option over time.
