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."

Saturday, November 3, 2012

AFR"s Alan Mitchell calls no cut on Tuesday

Interesting from venerable RBA watcher Alan Mitchell today:

It is easy to see why the RBA will much prefer to avoid creating the low interest rate, easy-money environment that can lead to [imbalances seen in Canada and Switzerland].

It is also easy to imagine why the RBA may refrain from cutting the cash rate again on Tuesday – not because it believes the easing cycle is over but because there is no compelling need to cut for the second month in succession.

And, when you share concerns expressed by Lowe, you probably don’t cut if you don’t have to.