How would an emergency rate cut inspire confidence?, would engender the opposite I'm sure. Besides the physcological factor (ie rates go down when bad times coming, so we should panic) any official rate cut would immediately reduce value of aussie dollar thereby increasing cost of imports including petrol and thereby inflation. ASX response would be to dive in panic. I expect ASX just about at capitulation stage, 100 points further to fall maybe. Expect sustainable rally shortly, forget financials though, selected commodities energy sector the place to be. I invest to for term so happy to have been topping up today at bargain pricews.
