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."

Wednesday, January 25, 2012

UBS: February rate cut "close call"--market underpricing RBA holds

From UBS's rates strategist Matt Johnson, who has a pretty amazing inflation forecasting track-record, and pinged today, right on the money:

"Feb is a close call for the RBA...With CPI around the RBA’s forecast, the market is under-pricing the risk that the RBA is on hold at their 7 February board meeting. The prior two rate cuts (-25bps per meeting in Nov and Dec) were close calls, and February may be even closer."