Next Monday we will see the Reserve Bank governor's semi-annual appearance before the House of Representative's Standing Committee on Economics. His opening statement will provide an opportunity for a more detailed justification for this week's rate cut. We will be particularly interested in how he deals with the stronger-than-expected boost to spending on investment goods.
Some commentators argue that the details in this week's national accounts make it less likely that we will see a swift follow up to this week's move.
We take the contrary view.