NEWSFLASH! In September I will join The Conversation as its Business and Economy Editor. I have been honoured to work at The Age for the past ten years, originally alongside the legendry Tim Colebatch, and for the past four years as economics editor in my own right.

At The Conversation, my job will be to make the best thinking from Australia's 40 univerisites accessible to the widest possible audience. That means you. From the new year I will also write a weekly column.

On this site are most of the important things I have written for Fairfax and the ABC over the past few decades. I recommend the Search function. The site is a record for you, as well as me.

I'll continue to post great things from The Conversation and other places here, and also on Twitter and Facebook. Enjoy.

Wednesday, November 12, 2008

Going down how far?

You'd be surprised.



The market is expecting a cut of 1.00 percentage points next month - enough to take the cash rate to 4.25% - its lowest level since it was formally set.

Incredibly it then expects another cut, of 0.75 points, in February - taking the rate to just 3.5%, and then another 0.25 points cut the next month taking it lower.

It's probably not wrong.