"Unfortunately Australia has little say in our own interest rates. We are subject to overseas lenders' demands.
Just hope and/or pray that QE3 goes ahead in the US, or interest rates will shoot up rapidly around the world. "
You touch on an interesting point here. Just because the RBA keeps the cash rate on hold, that doesn't mean banks won't raise their rates if funding costs for them rise. They are not in the business of soaking up rises in funding costs internally, they are in the business of passing them on to their customers.
