They didnt slash rates to encourage property investors to get leveraged up. Glenn Stevens has been quite clear many many times in many many speeches that he does not recommend people doing this. But some jurno's like to keep writing that the RBA is dropping rates to boost housing to spruik property anyway.
The reason they drop them was to try and devalue the dollar, and to also free up credit for business.
The problem is while most places are doing QE they keep their cash rate at 0% so they can borrow from themselves with no interest.
Australia doesn't need to do this, so by leaving our cash rate at a normal level it makes our $ very appealing pushing the price up which then hurts us with exports/tourism for bringing money into the country. So this adds artificial downward pressure on our cash rate.
ones the US stops the QE they will up their cash rate as they will also want to try and make the $US look more appealing, you will see ours in AU jump off the back of this as the gap wont be as big then.
