Interesting to see how the latest rapid cuts to official...

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    Interesting to see how the latest rapid cuts to official interest rates without any real narrative to justify it has been interpreted by the market poorly. Everyone is now beginning to confirm their own fears that the economy is in trouble and that will lead to a tightening of belts and the subsequent affects on employment. Chuck fears of QE in the mix and we are most certainly looking down the barrel of economic stagflation and real weakness in the AUD.

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    R
    BA needed to and should have held or raised rates to send a signal to the market that "we feel you are in good enough financial shape as a country to keep on doing your thing".
 
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