Raising rate creates deflation, because people are encouraged to save more (higher bank deposit rates) & spend less. Whereas cutting rate creates inflation, because people are encouraged to spend rather than putting money in the bank. Japan has a negative rate, it encourages people to spend and fire up all engines.
HotCopper & The Market Online will be live From the Floor at the Mining News Select Conference and we want to bring the voice of our online audience to the show with us.