Rates in Australia may yet have to fall to 1.0%

If it is going to weaken the Australian dollar to help solve its low inflation problem, the Reserve Bank of Australia may have to follow today’s 0.25% interest rate cut to a new record low of 1.5% with more cuts to 1.0% sometime next year. The dollar may yet fall from US$0.75 to US$0.65 next year.

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