• INTEREST RATES ARE APPROPRIATE FOR THE TIME BEING
• RECENT INFORMATION SHOWS DEMAND IS MODERATING 
• INFLATION SHOULD DECLINE OVER TIME
• GLOBAL FINANCIAL MARKET SENTIMENT REMAINS FRAGILE
• SHORT-TERM INFLATION LIKELY TO STAY RELATIVELY HIGH
• LARGE RISE IN TERMS OF TRADE LIKELY THIS YEAR
• TIGHTER CREDIT IS REDUCING PRESSURE ON INFLATION
• WORLD ECONOMY IS SLOWING
• CREDIT DEMAND HAS SLOWED SOMEWHAT
• FINANCIAL CONDITIONS HAVE TIGHTENED SUBSTANTIALLY
• BUSINESS AND CONSUMER SENTIMENT HAVE SOFTENED

Analysis: With the stock market declining (the All Ordinaries Index has fallen 16 percent in three months), consumer and business confidence down and higher mortgage rates that average 81 basis points higher this year versus bank rate rises totaling 50 basis points, the effects of the RBA tightenings are starting to be felt by the consumer.  On the positive side, unemployment is at 33 year lows.  

 Although analysts have been expecting another hike in May, perhaps the comments out of the RBA's Stevens and company, suggest they may instead be on hold for a more extended period.  If the market starts believing this, the AUD should start to weaken.