July 29 2011 here Sinclair Davidson says ( go to link)
In 2007 Kevin Rudd argued, 'this reckless spending must stop'. He was quite right then, he would be even more correct today. The Australian economy is in trouble – according to the Australian Bureau of Statistics (ABS), the first quarter of 2011 experienced negative growth. Second quarter figures will be published in early September. This week the ABS reported that inflation is well above the Reserve Bank's two to three per cent inflation target.
Normally an inflation result like that would see an increase in official interest rates. After all the previous inflation figures were also on the high side. But the economy is very sluggish at the moment. A second consecutive quarter of negative growth would mean that the economy is officially in a recession."
RBA underlying rate
Dec 2011 2.8
The cash rate was 4.75% at the time. It is now 3%!!