good post Jovanco. I disagree on one hand in that the AUD right now shouldn't be 'forcing' them to do anything though you are right the RBA may see it this way -
if anything the pros do not outweigh the cons if AUD at 85 cents means another 100 bp reduction; Not only does it risk a bubble from low rates it will make us cheaper for foreign funds.
Inflation would be imported, unless there is a fall off in global demand that knocks trade (oil, shipping rates, etc)but in this case the AUD would be hit anyway.
It about time the RBA admitted that the Federal Reserve sets our currency to the largest degree
