“Rally to me,” said Glenn Stevens. And investors did. The RBA rate cut WAS a full percentage point as we speculated yesterday. And it certainly did make a splash. Economists loved it. The critics praised it. And investors “huzzahed” the ASX 200 up nearly two percent on a day when the rest of the globe quaked in fear. What has changed? The bank has shifted from being worried about inflation to being worried about recession. A credit crunch?
October 8th, 2008 | Dan Denning | 4 comments | Continued