'Hold fire': Financial expert urges RBA to wait before moving rates

Veteran financial expert Peter Switzer is urging the Reserve Bank to"hold fire" on further interest rate rises until economic data on the effect of higher wages and inflation becomes available.

"I just think there's good reason for him to hold fire," he said on Monday, the day before the RBA is due to meet. "It is still worthwhile waiting to see the flow-through of that decision, but you're right," he said. The RBA is widely expected to increase rates when it meets on Tuesday following a decision by the Fair Work Commission last week to boost the minimum wage for thousands of Australians. Picture: Lisa Maree Williams/Getty Images

Meanwhile, Goldman Sachs and Capital Economics updated their predictions to a 4.35 per cent cash rate by July.

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RBA should ‘wait’ for economic data before raising rates againThe Switzer Report Founder Peter Switzer says the smartest thing RBA Governor Philip Lowe should do is “wait” for the economic data to come out before raising interest rates again. “I just think there’s good reason for him to hold fire,” Mr Switzer told Sky News Australia. “If he doesn’t, I think he will compound the problem...which will be really emphasised when the cliff happens.”
Source: SkyNewsAust - 🏆 7. / 78 Read more »