Some economists think the RBA's rate cut was a huge mistake. Here's why.
Most economists welcomed Tuesday’s rate cut, but not all. Those who wanted the Reserve Bank to hold steady are now warning it could have consequences.
Did the Reserve Bank make a mistake on Tuesday by cutting the cash rate for the first time in more than four years?
That’s the question at the centre of economic debate after RBA governor Michele Bullock delivered a hawkish press conference, despite the central bank delivering the widely expected 25-basis-point relief for mortgage holders.
One of the top critics of the move is EQ Economics founder Warren Hogan, who argued that the statement on monetary policy released alongside the announcement “doesn’t make sense with a rate cut”. The document outlined the central bank’s latest forecasts and economic outlook.
“It assessed the labour market to be tighter and consumption growth to pick up,” he told Capital Brief.
