Slowly turn­ing the tide

Finweek English Edition - - Market Place -

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.

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