Cash At 2% ?

This morning the RBA Head of Financial Stability spoke on the "Global Financial Crisis: Causes, Consequences and Countermeasures". If you're interested in finding out how we got into this mess please follow this link http://www.rba.gov.au/Speeches/2009/sp_so_150409.html.

Yesterday the NAB Monthly Business Survey showed conditions were marginally better but still at recessionary levels. Employment is the key area of weakness. They expect negative growth for the first quarter, -1% for 2009, just under 1% for 2010, unemployment to rise to 7 3/4 late 2009. Risks to activity and rates are still to the downside and their expectations are for the RBA to continue 25 point cuts to 2% in late 2009 as growth and employment deteriorate.