I agreed with the RBA's decision to hold in February, and think December may have been a mistake (only the benefit of hard empirical data will allow one to judge). What the banks do with lending rates is nevertheless important, and my necessitate fine-tuning to the RBA's official cash rate. Stephen Koukoulas argues on his blog today:
"[T]he RBA has plenty of potential downward flexibility with its handle on interest rate settings. While it clearly should have cut in February (which would have seen about 10 to 15 basis points passed on to consumers), the door will be open for cuts at every meeting for the next few months at least..."
