This is just in from the New York Times.
We can see why this cut might help short term in the US. However, we see it as pretty negative for New Zealand for reasons we have been explaining all day. Perhaps investors have cottoned on to the negative implications here, and this might explain the less than overwhelming vote of confidence on the NZX.
The Hive team is becoming increasingly worried about inflation - in NZ, in the US and in Australia. We don't expect central bank action in NZ or Aus short term, but it is looking increasingly inevitable in 2008.
