Granted the current i/rate is at emergency levels for a reason and has to move to avoid an "A. greenspan" scenario of the early 00's but I'm still quite entrigued by the decision. I was thinking December earliest, maybe even Feb for the first tightening but the RBA must be really concerned about inflation or the onset of undesireable lending practices. At last I checked global output to a large degree determines domestic output; Asia might seem to be stabalising but I'm not convinced about the U.S. I guess they're thinking that they can always cut them again, but I wouldn't really want to see the economic cycle turn again that quickly.
