"the most prudent course was likely to be a period of stability in interest rates"
Surly they are talking about for now? and not forever?
Also doesnt the RBA only controll the cash rate? they cant control how much it costs the banks to borrow money. If credit default swaps go up, or if lending costs go up, or if a credit crisis hits (EU, US, CN, JP) like in 2007 doesnt that instantly result to a credit crunch which push's lending rates up.
RBA is only 1 of many things that control interest rates, home loans will still go up even if RBA leaves the cash rate where it is for 20 years.
