Now most economists had not expected the move, and some are questioning whether it was necessary. Economist S. A. says that means the cut must be shortlived. 

 

 

This rate cut and any other that we might get over the next few months, the treasurer says, might turn out to be necessary, and we see the Reserve Bank taking this rate cut back before the year is up depending on what happens over the season causing it. In that sense it looks like what happened in the end of 2001 when the Reserve Bank cut rates in October and December of that year after the terrorist attacks of 9-11, only to rise again in May and June in 2002. 

 

 

Let's go to the markets. The share markets fell rarely overnight. The Dow, the NASDAQ and the S&P 500 all grew sharply. In London the FTSE closed up more than one percent. 

 

 

Checking commodity prices. WTC is trading at 53 US dollars a barrel, Tapies is 57 US dollars a barrel, and gold this morning is worth 1260 US dollars an ounce. The Ausie is buying just over 78 US cents, 68 euro cents, and 51 pence sterling.