The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Thursday, October 21, 2010

For central banking boffins: why 27bps vs. 25bps?

Amusing anecdote from Citi in relation to changes in Chinese interest rates:

"At last, 25bps – Outside observers have often been puzzled by why the PBOC adjusted rates in 27bp increments. The reason is that on the abacus, adding multiples of 9 was much easier than adding multiples of ten. So the modern PBOC inherited that special character from the old days. But clearly, computers and market participants may prefer rounder numbers."