Rabobank analysts point out that the RBA’s December minutes showed that like the toaster that it is rates will go lower yet, but not until the February 2020 reassessment of the outlook with updated projections.

“The RBA also discussed community concerns about the effect of lower interest rates on confidence, noting the decline in business confidence and consumer sentiment this year. This decline had coincided with heightened economic uncertainty globally, a period of softer growth in the Australian economy and weakness in household income growth, and the Board had responded to these factors in preceding months. While members recognised the negative confidence effects for some parts of the community arising from lower interest rates, they judged that the impact of these effects was unlikely to outweigh the stimulus to the economy from lower interest rates.”