Tuesday, October 7, 2008

Sledge hammer?

Interest rate cut by 1%

2 comments:

bruce said...

There was some leftist kerfuffle earlier this year about a possible 'Depression' in the US. I predicted to my lefty friends back then that Europe would collapse before the US does (not that I'm an expert).

That now seems to be emerging as the primary danger: European financial implosion, at least if you read reports from there which sound shrill and desperate. (Couldn't happen to a more deserving bunch of smart-alecs).

So, even if the US rides this out, which looks reasonable, Europe may not. Which will have some future impact. And the Res Bank is doing some anticipatory sandbagging, I think. Good on 'em.

Egg said...

Or were the previous rate hikes unwise?