Australia will have to “earn” its interest rate cuts from now on. All the low-hanging fruit has been plucked and we will have to see the economy slump further and unemployment climb sharply, to get the Reserve Bank to cut again.

It chopped by 4.25% in the biggest ever loosening of monetary policy in such a short time. It will now sit and wait for months, perhaps for the rest of the year, barring another slump in global markets or soaring unemployment levels.

Many market economists are maintaining their targets for the cash rate at 2%-2.5% by the end of the year, but many also are saying that the easing cycle is coming to an end.