Among the many blessings Australia has that keep the economy trundling along in spite of international devastation is our central bank. It runs the most accurate policy of any bank in the world, and has refused to follow the fashion into zero rates of interest found elsewhere. Here’s the latest news: Interest rates: RBA refuses to blink, keeping cash rate at 2pc despite IMF downgrade:

The Reserve Bank has defied mounting global economic gloom, keeping interest rates on hold for the fifth month in a row and expressing confidence in APRA’s efforts to keep a lid on ­investment lending in the frothy Sydney and Melbourne housing markets.

As the International Monetary Fund downgraded its economic growth forecasts yet again, including those for Australia, Reserve Bank governor Glenn Stevens issued almost a carbon copy of his previous month’s monetary statement, whose tweaks if anything suggested even less desire to reduce the 2 per cent cash rate. . . .

“The available information suggests that moderate expansion in the economy continues,” Mr Stevens said, dumping last month’s qualifier of ‘most of’ and once again pointing to the strength of the jobs market. In the only other major change from last month, Mr Stevens suggested APRA’s efforts to dampen the growth of investor housing lending were “helping to contain risks that may arise from the housing market”.

The bit on the housing market even makes me think that if they were about to shift, rates would be going up. Sounds good. Low interest rates will kill you, as the US economy so clearly demonstrates, or at least it would if only there was am economic theory to explain why that was.