That's a modest inflation 'spike' and within the RBA target...

That's a modest inflation 'spike' and within the RBA target range. Surely you wouldn't expect 'further rate cuts' from all-time low levels.

Prolonged very low rates just encourage asset bubbles. 2 examples: 1. the bottom end of the property market at the moment is very hot with cashed up boomers leaving first home buyers out in the cold. 2. Blue chip share prices booming eg TLS,CBA, WBC,ANZ. Someone will get burned here soon.

Also emergency (Swan's words) interest rate levels actually can damage confidence -by sending the signal that the economy is in crisis.