Shamubeel Eaqub on the Official Cash Rate: August 8th, 2019

Yesterday, the Official Cash Rate dropped by 50 basis points down to just one percent. That’s twice what the market had expected the drop to be… with expectations it would just be a drop of 0.25 percent. Adding to the surprise, a drop of 50 basis points is usually reserved for emergencies - the last time it happened was after the Christchurch Earthquakes. BUT - if all of this sounds like nonsense to you, then this is the story to try and explain it all. Stewart asked economist Shamubeel Eaqub what it all means… in layman's terms.