Australian stocks trimmed earlier losses after the rate cut, finishing 0.2% down at 5143.70.
But Mitchell sensed that the real effects of the rate cut would be overwhelming, economically and politically.
The Australian dollar weakened slightly, dipping 0.7% against the US dollar, after the rate cut was announced.
Alan Bush, senior financial futures analyst at Archer Financial Services, said the rate cut was a slight surprise.
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If tax rates were substantially higher to begin with, the rate cut might more than pay for itself.
The rate cut is the second since October and came after the Reserve Bank of Australia's monthly policy meeting.
Tony Volpon, a managing director at Nomura Securities International in New York, says that while the rate cut is welcome news, it was expected.
As if to justify the gloom, on the day of the rate cut it was revealed that manufacturing output had fallen by 0.4% in September.
The rate cut may also have created an environment in which troubled firms can undertake the asset sales that are needed to strengthen their balance sheets.
Chopping away at the thicket of tax expenditures would reclaim some or all of the revenue lost to the rate cut and raise taxes on affected households.
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Chief international economist at Capital Economics, Julian Jessop, said the rate cut would provide a "temporary boost to confidence", but warned there was still a lot more work to do.
Mainland developers were the main beneficiary of the rate cut, as the sector will be able to take advantage of cheaper funding costs and a possible increase in property demand.
But unless all of the costs fall on the top 5 percent who benefit from the rate cut, any reduction in tax expenditures must raise taxes on low- and middle-income households.
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Jeff Clarke, chief executive and president of global travel firm Travelport, called the rate cut a "quite decisive move", which "clearly has stemmed the fall" on stock markets around the world.
Further, the rate cut could help jump-start the economy.
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Following two days of sell-offs in stock markets across the globe--and a week ahead of its Federal Open Market Committee meeting (when the rate cut was expected)-- the Fed slashed short-term interest rates by three-quarters of a percentage point, its single most dramatic rate reduction since 1984.
In late January, the Reserve Bank of India cut its policy lending rate by a quarter of a percentage point--the first rate cut since April and the second in about four years--but said it had limited room to ease rates further given India's high inflation and wide current-account deficit.
The top tax rate was cut by only 13%, while the lowest rate was cut by one-third, 33%.
President Bush cut the Clinton era tax rates as well, with the bottom rate slashed by a third to 10%, and the top rate cut to 35%.
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Certainly, European markets have reached for their handkerchiefs this past few days, though opinions seem divided about whether the Fed rate cut in the U.S. was a smart move or a sign of panic.
This was the first rate cut since December 2008, when the global economy was staring over the edge of the abyss.
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In the Budget last year, my Right Honourable Friend introduced just two rates of tax with the basic rate cut from 22 pence to 20 pence - the lowest rate for 75 years.
Of more interest, perhaps, than the actual rate cut, which is fully priced in, is whether the ECB does more to shore up growth.
The second rate cut in five weeks was a modest one, but signals the intent of European policy makers to help the struggling economy in the face of a mounting debt crisis.
But the size of the UK rate cut in February, 0.25%, was far smaller than the two cuts announced by the Fed, which amounted to 1%.
Inflation hawks on the open market committee dissented from the latest rate cut and may have succeeded in keeping it to three-quarters of a percentage point rather than the whole percentage point the markets expected.
Gold is spiking again despite the lack of rate cut from the ECB, continuing to reflect expectations that new monetary easing is imminent from world central banks.
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