Wednesday, October 8, 2008

Frightening the Horses

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So the RBA cuts rates by 1% - the first time it's done such a thing since 1992 (when rates were much higher) and the market jumps in response.

Perhaps I'm getting paranoid but doesn't this suggest a degree of concern at the RBA that we haven't previously appreciated?

If anything, I would have thought that a cut of this magnitude would frighten the horses in a fairly big way.

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