Slowly turning the tide
The cut in interest rates, unexpected and the first in five years, was modest at 0.25 percentage points. But it is important. Much like the fact that entering a recession was not directly a big deal as the consumer had been under pressure for ages, the dreaded R-word still sucked confidence from the already burdened consumer. This rate cut brings back some confidence. Make no mistake: the consumer remains under pressure. Yet this rate cut, and maybe another two for the rest of the year, will certainly help to turn the tide, slowly creating a more positive environment.