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.