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, February 21, 2011

Ross 'RBA' Gittins now beating the interest rate drums...

Bom, bom, bom, bom, bom, bom, bom, BOM, BOM, bom, bom, bom, bom, bom, bom, bom, BOM, BOM. That's Ross starting to pound the rates drums... He also has another crack at convincing consumers that they are benefiting from deflation. Anyhow, it does not get much more explicit than this:

"Little wonder the financial markets aren't expecting any further increases in the official interest rate until quite late this year, and the governor of the Reserve Bank, Glenn Stevens, thinks rates are ''about right for the medium-term outlook''. But I think there's a lot more strength behind the economy than all the surface noise would suggest. If I'm right, the rate rises will resume earlier than the markets presently expect...

The economy's potential rate of economic growth is only about 3.25 per cent a year and, with unemployment already down to 5 per cent, we have little spare production capacity. Even so, the Reserve is forecasting growth of about 4.25 per cent over this year, with growth of 3.75 to 4 per cent in the following years. Sounds like a recipe for higher interest rates to me."

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