Not Armageddon, but ugly enough

Oliver Hartwich | The New Zealand Initiative | 11 December 2012

According to the Mayan calendar, the world will end on 21 December this year. It's not clear, though, whether this was the motivation for the Reserve Bank of Australia (RBA) to cut interest rates to 3% doomsday levels. Hopefully it is not because it is uncertain whether such a cut will be able to save Australia at least.

What is unsettling is that the RBA has returned to interest levels not seen since the peak of the ...