K8, just type in "Stagflation" in Google and there goes the answer.
As I said, if the RBA can cut rates so freely, they wouldn't have jacked it up to this level and in such rapid succession.
Our economy is wide open. The interest rates seetings here depends on many external fators.
As I said, the moment the RBA cuts rates like the way you descibed, then the AUD will crash. All the overseas buyers would have dumped their property holdings as quick as Flash Gordon.
There is nothing worse in losing 50%+ in the price of the property and then lose another 30% on top of that in a AUD currency bust.
