| If you asked the RBA what was the intention of interest rate cut, you'd get a vague answer that they are only responding to the economy, not directing it. In a sense that's true. The RBA does not force anyone to borrow money. But in reality, the rest of us see the RBA not as some uncaring and unconcerned data-driven machine, but as a money tree, which is sometimes in full bloom and sometimes denuded of foliage.
Thus, when interest rates are high we tend to bunker down and wait for spring. When they are low we enter a frenzied harvest and store the debt in the nearest house...............................................Full Article: Source
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