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."

Sunday, February 13, 2011

Does this sound dovish to you?

It sounds more like a man who has been beaten up by parliamentarians for three hours about the adverse effects of rate hikes...

"Mr BUCHHOLZ —I have one final question with reference to one of your other comments today. It was predominantly that you did not think that interest rates were going to move right now. Am I comfortable in assuming that that means 12 months?

Mr Stevens —I do not think I can give you a 12-month guarantee. What I said is that the market pricing at present has nothing much happening until quite late this year, which means they think nothing much is happening for some time. But nobody’s expectations about the end of the year can really be all that strongly held, frankly, at this stage. I would not want to say that that is an unreasonable set of expectations given the facts as we now know them. That is not a guarantee that nothing will happen, but I am fairly content with where we are at the moment. I think we are in a good position. I think we are ahead of the game, which is where you want to be. That is the thing that affords you periods of sitting, waiting and watching. Sometimes they can be reasonably lengthy periods."

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