So, RBA cut rates this week but unlike previous cuts, this time the market barely even flinched. You could say that the market had already priced it in, or that the cut wasn't big enough....or you could say that rate cuts at this historically low end of the spectrum really are not going to give the desired effect of devaluing our currency and stimulating inflation.... I'm expecting that the AUD will continue to creep upwards as our neighbours all play thier parts in the currency wars and trash thier own currencies faster than ours. So I am also expecting that inflation will stay low (maybe even deflation) and other economic data will also suggest that this last cut is not having the desired effect of stimulating anything other than the housing market. Many analysts are predicting the RBA to cut down to 1% (another 50 basis points) before the end of the year, but is that really going to achieve anything? Other countries are starting to try out various forms of Quantative Easing, bond buying programs and other forms of stimulus - so how long until the RBA starts trying some of that stuff here? We have a new RBA governor coming on board soon, so it may be as good a time as any for a strategy change. If so, whats the next step for the RBA? What will we see here in Australia? I know that if it was up to the politicians we'd probably get a big fat infrastructure spend that will create jobs. But on what? Is it likely that we will see bond buying programs here in Australia soon? It seems to be all the rage in England, Japan, Europe....and we are hardly innovators when it comes to this stuff - we follow the herd. So what sort of investments are likely to benefit from a strategy change. I figure investing in GOVT.AX or BOND.AX might be good for government/corporate bond buying programmes (respectively) but what about infrastructure spending. Where does this spending manifest on the market? Companies like Boral who build stuff, or Infrastructure Funds? Does anyone have any idea how this has worked in other countries. I'm trying to put together a bit of an investment plan for the family and I'd appreciate any input from some of the wise heads here on SS. Please discuss with me!