Richard Wagner is CEO of Morgan Stanley’s Australian office. He spoke with Bloomberg TV.
He has an optimistic outlook on Reserve Bank of Australia rate hikes ahead. Says only one more hike coming.
- “It takes a few months for those rate rises to drain bank accounts so we’re really talking about a third-quarter phenomenon where the consumer will have adjusted significantly and then we’ll be on pause.”
- a number of consumer companies have recently announced earnings downgrades in Australia (which) indicates that households have already “capitulated to the cost of living.”
Earlier from the RBA today:
- RBA Governor Lowe says if inflation stays high we will feel a lot of pain
- RBA Gov Lowe: Further tightening of monetary policy may be needed
Yesterday the RBA hiked rates again:
This is getting more and more relevant (recommended, but language warning!):