With the RBA Board Meeting set for 3 February, speculation is rife as to how low rates will actually drop. We do not have a crystal ball, but we do stay abreast of a lot of economic commentary in the market. Most economic forecasts predict further drops in the official cash rate throughout the course of 2009, with variable rates possibly set to go as low as 3.5%-4%pa. Most commentators view this type of range as the true bottom of the variable interest rate market in Australia, however whether we get there or not is another question.