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."

Monday, November 1, 2010

ANZ are out on a limb forecasting a November hike

They got the inflation numbers right with a core CPI print of 0.6%. But unlike most of their peers, ANZ have not been pushed off their November hike call. They make some good arguments to go in November, which regular readers would be familiar with. One simple one is ANZ's Taylor Rule, which suggests rates should be a little higher. Perfection might be for the RBA to stay on hold in November and let the banks hike lending rates, say, 0.20% to do some of the heavy lifting for them. But, then again, perhaps the current climate is not conducive to that particular dynamic...