OMG! The market will be spooked if the RBA cuts 50!
There are some financial market analysts seemingly railing against a 50 basis point rate cut from the RBA next week.
Such a move, it is opined, will “spook the market”, “damage the RBA’s reputation”, “frighten the horses” and other such terms. These might be valid and interesting projections. But no one that I have seen has articulated what this actually means.
Will a 50 basis point cut lead to a stock market crash? I would judge that it would boost the stock market.