I continue to hold a different view on the direction of interest rates. I always hoped for an orderly decline of our dollar but what we are witnessing now appears to be an exit of overseas investors who for a long time saw Australia a a safe haven. Overseas investors hold the clue to the direction of rates IMO. We need them badly to fund our debt. The decline of our currency started with a trickle but it appears to gain speed and worst case could be a dramatic decline where everyone is running for the exit.
I still hold the hope that we will not see a collapse of the A$ as that would leave a trail of destruction.
For above reasons, I hardly see any scope for lower rates.
