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Speaker 1: Good news the Reserve Bank has finally done the thing

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Speaker 1: many of us thought was necessary, and they've gone for

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Speaker 1: a double cut in the ocr of fifty basis points.

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Speaker 1: That's the good news. The bad news is that they've

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Speaker 1: been forced to do it because they didn't do it earlier,

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Speaker 1: as in, they haven't cut as quickly as they should have.

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Speaker 1: I mean, think back to July and they actually chose

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Speaker 1: not to cut at all, which was clearly a mistake

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Speaker 1: at the time, but became even more of a mistake

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Speaker 1: when we saw the shock GDP number that followed, and

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Speaker 1: that we saw that in the three months before that decision,

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Speaker 1: the economy had actually contracted by a whopping zero point

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Speaker 1: nine percent, and the Reserve Bank hadn't really noticed at all.

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Speaker 1: And the bad news, i suppose again, is that they

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Speaker 1: could have cut a double cut last time, when two

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Speaker 1: of them on the Monetary Policy Statement said we should

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Speaker 1: go double cut, but more of them said, now, let's

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Speaker 1: just go with the single cut. So they've gone with

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Speaker 1: a double cut today, vindication for two. It would seem

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Speaker 1: We're going to stick to the good news, though, which

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Speaker 1: is that finally the Reserve Bank has caught up with

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Speaker 1: the rest of us the economy is cooked and we

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Speaker 1: need to do something, so they have delivered it. They

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Speaker 1: admit that this is a signal. The signal is it's

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Speaker 1: okay to go out and spend and invest because they've realized,

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Speaker 1: finally that people are freaked out. Right, there have been

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Speaker 1: too many predictions of green shoots just before the economy

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Speaker 1: falls again, which freak people out. There have been too

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Speaker 1: many bad surprises which freak people out. Business confidence is shot.

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Speaker 1: Look at the qbso yesterday. Consumer confidence is also yet

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Speaker 1: slightly increasing, but still really negative. People are holding onto

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Speaker 1: their money, They're saving instead of spending. They're worrying instead

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Speaker 1: of investing. This cut is a circuit breaker that's supposed

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Speaker 1: to snap us out of a fair our fear. Now,

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Speaker 1: there are some who worry that we are actually already

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Speaker 1: so freaked out that even this cut, given how big

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Speaker 1: it is, could spook us all over again. It's possible,

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Speaker 1: maybe it would happen, but I think what's more likely

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Speaker 1: is that it's going to give the assurance that people need,

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Speaker 1: and the assurances that the people in charge of the

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Speaker 1: economy actually realize how bad things are and are prepared

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Speaker 1: to be bold, And finally they are prepared to be bold,

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Speaker 1: and I'll tell you what. It's better late than never.

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Speaker 1: For more from Heather Duplessy Allen Drive. Listen live to

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