I like John Kehoe. He has talent. But he should be careful of what company he keeps:
One quarter of soft economic activity does not make a trend, so chatter about the Reserve Bank of Australia being forced to switch its bias to interest rate cuts is premature.
…the fundamentals for the local economy remain sound. Unemployment is a low 5 per cent. Corporate profits are strong, helping the federal budget roar towards surplus. Consumer sentiment is elevated. Wages are showing flickering signs of improving, as the labour market tightens.
…As HSBC’s Paul Bloxham and CommSec’s Craig James both point out, people do not measure the value of their home each month. A lower house price may only become apparent to individuals if they are selling their home.
You want to bet? That’s all Australians do these days. They do so obsessively. The irony is that two permabullish bank economists and the RBA deny it. Multiple rate cuts are coming to humiliate them all.
Playing it safe in journalism may get you a pay check but it won’t advance your career much when you start being wrong all of the time.
