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, March 5, 2012

Koukoulas: RBA should have cut rates in February...

I agreed with the RBA's decision to hold in February, and think December may have been a mistake (only the benefit of hard empirical data will allow one to judge). What the banks do with lending rates is nevertheless important, and my necessitate fine-tuning to the RBA's official cash rate. Stephen Koukoulas argues on his blog today:

"[T]he RBA has plenty of potential downward flexibility with its handle on interest rate settings. While it clearly should have cut in February (which would have seen about 10 to 15 basis points passed on to consumers), the door will be open for cuts at every meeting for the next few months at least..."