our inflation will dissapear rapidly as unemployment rises with falling property prices. banks have already cut lending significantly which is the juice that has kept the unemployment rate low and inflation high. exactly as happened in the US.
Theres not much chance of a strong recovery in america in the short term imo. corporate profit growth is powered by job cuts not revenue growth. a very bad sign for a strong recovery.
unfortunatly the lower rates will require very large deposits and excellent credit and wont be available to most FHB.
Even rates of 0.0 to 0.5% wont stop the fall in prices just look at the US and UK.
