1% cut! This is serious mum

If you’d been quick this morning you would have made double figure money from the bookies on a RBA cash rate cut of 1%. Surprise, surprise … Glenn Stevens you old fox. The commentary seems to have been a bit slow off the mark. The usual gaggle of spotty herberts in bad, fat ties on Sky news/business have been flummoxed, 1% being well outside their range of expectation/experience/capacity to extemporize. So 1% feels good momentarily, until you pause to consider just how bad the RBA thinks things might actually be …

Rudd has spoken this afternoon, a moment notable for his dextrous employment of the expression “pass through”. This is either a: what banks might do in applying the full RBA cut to their own retail products, b: what happens when pensioners eat cat food or c: what a camel does vis a vis the sewing implement prior to its entry to paradise.  Wherein it will presumably find 72 virgin camels, so it’s worth it. Things are not so good for pensioners on that score. They will probably find a 72-year-old virgin. Thank you very much. Try the veal.