For 10 of the latest 12 quarters the inflation rate has been in the 1-2% range, consistent with the fact that inflation in Australia remains low and stable. But there is a problem with the inflation target being 2-3% when that target is so difficult to achieve given global factors and their influence on inflation, and structural changes in our economy. Now is not the time to cut rates, rather it is time to reset the inflation target to 1-3% to better reflect the Australian reality, and to avoid the pressure on the RBA to fruitlessly cut rates and create further distortions. I think that many economists have forgotten the pushing on a string analogy. At these levels of the cash rate further cuts in interest rates are unlikely to do much to stimulate the economy.