just on skybusiness channel, page-6

Core CPI after energy and food at .2%. Annualised CPI and inflation is higher than expected but combined with most economists forecasts for a very slow economic growth period (its viewed by most as a null effect), a 0.5% is more likely than a 0.75%.

If a 0.75% given (in which markets are saying a 44% chance)it would be too aggressive too quickly imo and could blow inflation out the door in late 2008, 2009.

Question is would a .5% cut bring confidence back into the market? Don't know.

But at 0.2% December CPI and current inflation rate combined with economic forecasts, the green light was given last night for a 0.5%cut.