As they say at the craps table: “Shooter, shooter coming out.” And make no mistake, Michele Bullock and her board are playing dice with the Australian economy and the Reserve Bank’s credibility.

The 25-basis-point cut announced today is a massive punt. It might work out. But it’s imprudent. It deals away the RBA’s optionality. And it looks like exactly what it is – caving in to pressure from various corners. In case you were wondering about that, they let cameras into the board meeting for good measure!