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."

Friday, February 10, 2012

RBA opens door to ANZ hike (text)

From the RBA's Statement on Monetary Policy today:

"Bank debt markets globally were particularly dislocated in the latter part of 2011, with minimal issuance, partly reflecting concerns about the European banking system. Over the past month, conditions have improved, with issuance picking up markedly, but spreads on bank debt are significantly higher than they were in the middle of last year. Indeed, some large corporates are now able to raise funds in the capital markets more cheaply than banks with a higher credit rating. These global developments have had an effect in Australia, where there has been a step-up in the banks’ overall cost of funding relative to the cash rate."