The market's last rate hike holdout flips, calls for outsized RBA cut
Former ANZ chief economist Warren Hogan has been a vocal RBA critic, was the loudest voice still tipping rate hikes. Now he is seeing things differently.
When the Reserve Bank’s monetary policy board meets on Tuesday, Warren Hogan thinks it should surprise the market with an outsized 35 basis point rate cut.
This may well cause some whiplash, given the EQ Economics managing director was among the last to maintain a call for rate hikes in 2024 and has prominently criticised the RBA for failing to hit Australians with more increases during this period.
Hogan doesn’t think he was wrong to maintain this call for rate hikes, and he still has concerns about where inflation is heading. But he now thinks there is a clear justification to get back to a “neutral” cash rate of 3.5% as quickly as possible.
“They missed an opportunity last year to take a bit more out of the inflation, which meant doing more damage to the economy,” Hogan told Capital Brief.
