A 20 basis point cut

The Bank of Japan cut its benchmark interest rate to 0.3 percent in a split decision to help stave off a prolonged recession.

Governor Masaaki Shirakawa cast the deciding vote to lower the key overnight lending rate from 0.5 percent after four of the eight board members dissented, the central bank said in Tokyo today. Three wanted to cut the rate to 0.25 percent, and one wanted to leave it unchanged, Shirakawa said.
Heresy! Don't these people know that the only way to change rates is to do it in multiples of 25 basis points? ie 7.75% to 7.50%, 8.00% to 8.25% etc etc.

Actually, to be honest I always wondered what would happen if someone did this. Imagine if the Fed dropped rates by 10 basis points, from 1.0% to 0.9%? Everyone would be sooooo confused.

It would be like the US Treasury issuing 20c coins instead of quarters. Hah! Who would ever do such a thing?

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