I was suprised about the rate drop as well, my comment at the time was I didnt think glen stevens was that negligent.
When i thought about it more the mines have been smashed this year, jobs are being cut like crazy and mines looking at closing down. There will be a lot less money coming into the country.
I guess if they can force the price of the dollar down, then exports make more money and can compete easier.
Rates are so low now, that i think dropping them from here isnt goign to put much heat in the housing market, it will be interesting to see what happens though if they get caught out on this and the inflation rate starts to climb sending the cash rate soring.
