BIS Review 13/2010  5  Some of this undoubtedly reflects the restructuring of industries and the reallocation of capital and labour to new industries. Some may reflect longer-tailed resources investments. There remains the possibility that firms have not yet anticipated intensifying global competitive pressures.
And then following the recent CPI data which provided confirmation of the subdued inflation pressures, the Board lowered the cash rate by a further 50 basis points, bringing the cumulative decline since November to a full percentage point. Over this period, most lending rates in the economy have fallen by around three-quarters of a percentage point and are now at slightly below-average levels.