Glenn Stevens has just cut rates by 1%. The biggest cut since 1992, the Keating horror years.
Why the drastic reversal now? It's almost like the present economic difficulty was unforseen by him. Sorta took him by suprise. That's bad for a econobrainic isn't it? hmm
But hang on. This crisis started in August last year.
Stevens increased interest rates FOUR TIMES since August last year!!
Sep 2 2008 25bps down 7.00pc
Mar 4 2008 25bps up 7.25pc
Feb 5 2008 25bps up 7.00pc
Nov 7 2007 25bps up 6.75pc
Aug 8 2007 25bps up 6.50pc
As i recall the first one just before the crisis hit, at that point Stevens failed to foresee it.
Since then he's failed to see whats right in front of his goddam eyes!
There was never any need to increase interests rates since August last because this danger was always coming our way, and our economy was never expanding out of control, except in ALP propaganda.
