At the current rates they can cut only to ~ 1 - 1.5%, because the closest rate is CAD at .75% and AUD is historically weaker (at least rate wise). So yes they will be cutting for foreseeable future or until a major shift in the game. If/after something happens RBA will have to do what they have to do to try to save what's left, i.e. raise it to 10%, start printing mad or change the currency. Until then they will keep cutting it in random intervals, you can bet on it. (Having said that they might attempt to raise it .25% at one point in time only to cut it again a couple of months later).
They can drop it, but I don't think they can raise it as fast or at all given the massive increase in housing debt being steadily added. Too many people are right on the edge of what they can service, and any rise in interest rates would lead to a slaughter.
^^^^ but what does this say about the prospects for PMs? The AUD is going down down down, but will we see an equal corresponding rise in the spot price denominated in AUD?
Anyone notice the aussie/nz exchange? I wouldn't be surprised to see talk of a shared currency come up.
Talk has been around for a few times in the past. Tends to be the Aussies pushing it and Kiwis being against it.
Unless the world was headding into recession? In which case our agricultral economy might look pretty tempting?
RBA just released its statement on monetary policy and has lowered projected growth forecasts Australian ZIRP is here, VLIRP?