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This morning's move by Aussi central bank chief, Glenn Stevens, to cut interest rates by 100 basis points was one that should be applauded, globally. Not only was he the most objective in taking his target rate up during the global asset inflation mania (see chart, he raised rates since 2001), he is now one of the few who can proactively manage global asset deflation from a position of strength.

Here are 2 charts: CPI & Target Rates for the past 10 years; and the ASX 200 (AUD&USD).

Keith McCullough and Andrew Barber
Research Edge LLC