Australia Hops

Australia's central bank has raised its lending rate by 25 basis points. I read a very interesting economic commentary (no link, unfortunately) that speculated that the best way a central bank can halt an economic decline is to publicly declare a floor on interest rates and hold to it. A central bank that continually lowers rates also continually sets an expectation that an economy is bad and getting worse. The thinking was that setting a rate floor creates a psychological floor as well. Is it true? I don't know but Australia may be giving us a clue.