Just because we are going to have low growth does not mean that interest rates will be low - not today.
The world is riddled with debt, Italy and Spain together have to borrow close on Euro 600 billion in 2012. Because of all the debt, there is not much money available to be loaned out, so commercial loan rates will rise.
Australia is one of the largest wholesale borrowers in the world, so IMO, it's only a matter of time before we see an increasing gap between the RBA rate and the rate that Oz. banks will have to charge borrowers.
