When the Reserve Bank slashed the Official Cash Rate by 50 basis points to 1 per cent in August, the business community sat bolt upright.

It felt like the central bank had given shock treatment to a patient that didn't really need it.

What did the governor know that the rest of us didn't?

Clearly the economy was cooling, economic activity was getting weaker and there was heightened uncertainty about escalating trade tensions between the US and China.


Other central banks were also easing monetary policy to support their economies.

But 50 basis points?

The last time the Reserve Bank