As I posted before, the RBA faces a big dilemma/impasse.
Australia is in the same bind as every other country, faced with a choice between inflation and a noncompetitive export sector – because the world’s reserve currency is being deliberately depreciated.
If the Reserve Bank keeps cutting, inflation is guaranteed; if it doesn't, the ruin of Australia’s manufacturing and tourism sectors is guaranteed.
Established Oz. house prices are already way overvalued, therefore they can not be allowed to rise. House prices are secondary in the current situation.
