You have got to be kidding?A rate decrease will cause a drop in...

You have got to be kidding?

A rate decrease will cause a drop in the A$ (but that's good for exporters and has already been factored into the market) and it will make O/S goods dearer (that's good for our balance of trade).

Home owners will have lower mortgage payments, so will either put saved cash into a bank, pay off more of their mortgage, spend more (good for economy) or it will simply take the pressure off a little (which we all deserve!).

As to policy, what do politicians or economists know about monetary policy? In the US, they dropped rates - we increased them and so did the Europeans - in any case it didn't work in the US and it didn't improve matters here either way (well, O/S goods were cheaper for a long time ("bad"), our exporters suffered ("bad"), etc., our balance of trade (would have suffered too if it were not for the resource sector).

What ppl fail to realize is that Oz is known to be in good shape compared to almost any other country in the world and our interest rates have only a little to do with it. In other words, we change our rates, the rest of the world says, "so what"?