Because cutting rates has worked soo well up to nowAnother BAD set of economic statistics!
It's not looking good at all. It's a bloodbath in investment.
I would not be surprised if rates are cut further in the next 12-18 months to avoid recession.
The only way Australia will avoid recession is if the Government fiscally stimulates the economy to a large extent. Already the deficit has blown out 50% since the Liberals took office. The deficit has gone from 12% of GDP up to 18% and that has only stemmed the bleeding with the economy still trajected to get worse. Since both sides of the political spectrum have a hatred towards deficits and have conned the public into thinking the budget is akin to a household budget I don't hold much hope for Australia at the moment.