American interest rates are so close to zero that they can not fall much further. Aussie rates are a lot higher than US rates, so that will probably keep our rates where they are for the time being or at least until after the next federal election.
The US economy is showing signs of recovery, hence the rising stock market. I don't think it really is recovering but the artificial recovery underway might be able to be sustained for a long time or maybe not. Nobody knows for sure, but I do think we are in a bear market rally.
The rising Aussie dollar could wreck our booming economy and any increase in our interest rates would put more upward pressure on it and the Reserve bank would want to avoid doing that.
But what to do about the city housing bubble ???? Apart from increasing interest rates I don't know so it may continue for a while yet. Interesting times.
