Stevens Says RBA Must Be Cautious About Rate Cuts (Update1) - Bloomberg.com Me thinks the RBA and government should have held more frequent meetings if they didn't want marginal borrowers entering the market, because the last time I checked marginal buyers were pretty much made up the bulk of the buying market right now with the big FHOG boost and unprecedented rates cuts! Though it definitely seems to highlight the RBA won't be dropping rates further until Australia itself starts to really see some of the negative effects of this global recession, because as many commentators have pointed out - thus far this recession has been a major boost to the average household budget with only about 1.5% increase in unemployment (which isn't THAT bad) but mortgage payments and petrol prices having dropped massively! So all in all you'd say the average Australian household is doing quite well out of this recession, so far. So it is looking like the RBA might be waiting a couple more months to see if unemployment really starts to grip into the economy before they look to cut again. Though it will be interesting to see if they decide to act of falling inflation, given that in the last few months it been virtually sitting at 0% which is well below their 2% - 3% target.