Wednesday, 8 October 2008

A shock 0.5% interest rate cut!

Well sort of a shock.

I was anticipating a 0.25% cut tomorrow and then another in November with several more next year.

The Australians cutting 1% this week made it seem more likely that we would get a 0.5% cut ourselves.

The cut gave the markets a temporary lift, before falling back again.

Hopefully the banks will not pass this on to savers, encouraging savers to help capitalise the banks.

What odds another 0.5% next month?

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