A falling dollar is not all bad. Our exports will be cheaper and will be more in demand. Sure imports will become more expensive but again that is not so bad as it will reduce peoples spending on many non-essential items.
It was only a few years ago our dollar was in the 60c range and we survived - the economy ticked along.
My point was we have the capacity to drop rates some if needed - not that it will happen. If rates the RBA rates were 0% we would have no where to go to stimulate the economy other than direct hand-outs (but even then there is only so much you can hand out).
