Rate cuts over. If we have another rate cut from the Reserve Bank, then head for the hills, it will be confirmation the economy is heading for the rocks and probably nothing can stop it sliding into recession. Or it will be because there’s a financial crisis brewing somewhere in the world? Extreme? Well, just look at change in the wording of the important final paragraph of the RBA's various post-meeting statements. First, take a look at the final paragraph of the April meeting statement:

"At today's meeting the Board judged that it was appropriate to hold interest rates steady for the time being. Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target. The Board will continue to assess the case for such action at forthcoming meetings.”