The dichotomy at the heart of the Australian economy
Bank of Queensland chief economist Peter Munckton has an explanation for why where there is so much disagreement about the future trajectory of the Australian economy and interest rates right now.
There’s not much consensus right now about what the Reserve Bank is going to do next. Many economists are expecting a rate cut at some point in the next year, though few agree on when exactly this will happen. Some still think another rate rise is possible. Money markets are even pricing in a small chance of that happening in August.
Peter Munckton thinks there’s a simple explanation for all the noise and inconsistencies.
“Every industry is very different at the moment, every region is different,” the Bank of Queensland chief economist tells Capital Brief as part of a wide-ranging interview about his career and views on the economy.
“Where you get all your information from skews how you read the data and it comes up in views of what should be happening with rates.”
