Jesus, for them to use up invaluable ammo (2 cuts in last 2 months) when nothing catastrophic has happened *yet* seems odd. Something definitely has them spooked. I'd say it's because of this from Steven's statement-
Mr Stevens said the Asian region was starting to weaken as the European debt crisis infected world markets.
“China's growth has been slowing as policy makers there had intended,'' he said.
“Trade in Asia is now, however, seeing some effects of a significant slowing in economic activity in Europe.”
Somebody should remind the RBA you cant go lower than 0%, and we're now considerably closer to 0% than two months ago............let alone when rates were 7.5% odd in 2007. Feels like they're setting themselves up for the trap, surely they can't be that daft.
