i/r is the only stimuli the rba has and this economy will require more stimuli than you can imagine. you can not see it at this moment, but you will see banks tightening up credit to small & medium business for example which in effect will cause unemployment issues. we are likely to see 2 million unemployed in australia by 2010 if business conditions do not improve drastically from today. the rba will cut i/r close to zero but banks will not as they will seek to redeem their bad debt provisions which is going to spike out of control.
