The Reserve Bank has limitless access to Australian dollars and a reputation to protect.
The Reserve Bank should stick to its guns. Australia's economy still needs all the support it can get.
Record low interest rates will almost certainly drive up property prices. But they will also drive down unemployment and boost investment generally.
Much more needs to be done to accelerate spending and investment, says UNSW Business Professor Richard Holden.
By himself, Reserve Bank Governor Philip Lowe may not be able to keep Australia out of recession.
Any interest rate cut on Tuesday could be supercharged by another move to give borrowers more money to play with.
When the Reserve Bank considers the numbers around inflation, it knows it has little choice but to act, says Professor Richard Holden.
Pushing up interest rates due to current Australia unemployment figures and historical economic theories may de dangerous.
It is thought that it doesn't help much to cut official interest rates toward or beyond zero, and maybe it doesn't, but new research suggests the answer has a lot to do with the housing market.
Persistently low inflation puts the Reserve Bank in a difficult position where the right thing to do might be doing nothing at all, writes Richard Holden.