Which is more important, a 25% monthly collapse in the price of your main export or a raging housing bubble in your largest city?

It’s a tough call, however the RBA has a rigorous methodology for addressing the dilemma:

Here’s the full statement.

It’s highly unlikely this decision will cool housing speculation over the next month in any noticeable manner. And it’s equally unlikely that iron ore will rebound materially in that time. (Despite being due for a bounce, Chinese steel futures are selling off again today.)

So stay tuned for next month’s coin toss.