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The big four banks are yet to move after the official interest rate was cut yesterday for the first time in eighteen months. The Reserve Bank dropped the rate by twenty-five basis points in a bid to boost the economic growth.
Now most economists2 had not expected the move, and some are questioning whether it was necessary. Economist1 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 treasurer3 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.
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1 economist | |
n.经济学家,经济专家,节俭的人 | |
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2 economists | |
n.经济学家,经济专家( economist的名词复数 ) | |
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3 treasurer | |
n.司库,财务主管 | |
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4 sterling | |
adj.英币的(纯粹的,货真价实的);n.英国货币(英镑) | |
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