What should monetary policy be?

Comments on Adam Carr “SCOREBOARD: Rates armoury” 5/12/2011, http://www.businessspectator.com.au/bs.nsf/Article/interest-rates-RBA-Reserve-Bank-markets-euro-crisi-pd20111205-P8RML?OpenDocument&src=sph&src=rot

I think it would be beneficial to have another cut in rates.

In a world full of uncertainties including possible an another financial/banking crisis, and with inflation not out of control, as well as relatively low activities everywhere except mining, Australia can afford to lower its official interest rates to benefit consumers as well as most businesses.

A good monetary policy is to balance the benefits and costs of inflation control, so the national welfare can be maximised.

I am not sure the current policy setting meets that criterion.