Judging by two public speeches from senior Reserve Bank officials this morning in Sydney, don't expect interest rates to be cut again quickly. According to the tone of both speeches (from deputy governor Phil Lowe and assistant governor Guy Debelle), the central bank is happy to sit tight with the cash rate at 3% and watch the progress of the economy as the 1.75 percentage points worth of rate cuts since November 2011 continue to work their way through the economy.

Thanks to the high dollar and high-saving consumers, inflation remains well in the bank's comfort range, domestic consumption is growing -- but not overheating -- and there are tentative signs of those rate cuts starting to work. Europe's woes have eased (despite the current Cyprus concern), but the economies in the region remain weak. The US economy is growing, China is still solid and sharemarkets have enjoyed a solid rise. Home prices in the US, Australia and several other countries are rising again.