rba drops rate by 1 per cent, page-20

When the US became so reactive with their interest rate cuts (mean that when the market looked like it was in trouble, they cut), I thought that the US MUST be in a lot of trouble. Perhaps, the RBA know a lot more than what we know. Perhaps our economy is in a lot of strife. I really can't see inflation being as big a problem any more. Let's not forget, the world's inflation number have been driven by oil. I know at home our economy was cruising along nicely even though oil was a factor. Now that oil is sub $100 and spending coming off significantly, I don't think inflation is going to be as much a problem. I've always had a little chuckle to myself that people blame Kevin Rudd for our inflation figures, when the whole world is experiencing the same problems. Rudd has been here a minute and we want to blame him. Like him or hate him, a lot of things are out of his control. The same could be said if the Liberals were in power, but they have had a lot more to do with where we are today.