The 0.25 per cent cut in interest rates last week will be a welcome tonic to not only borrowers but also the small business community in our two-speed economy. If you don’t have anything to do with the mining industry then you’re doing it tough.

Now the debate is on whether this latest cut will the first of a couple.

For us, that depends on Europe and China.

The Australian economy is solid, but not spectacular, and the interest rate level is about right.

It’s the global threats which will decide if further cuts are on the way. If the European Union rescue of Greece starts to unravel (which looks a fair bet to happen), and financial markets tank, then more cuts will come.