ANZ's Jo Masters makes non-consensus 2018 cash rate call

Jo Masters, the senior economist at ANZ, has gone against no movement consensus with her big call that there will be two interest rate rises this year. 

She forecasts the RBA will take the cash rate from 1.5 per cent to 2 per cent during 2018.

Masters, the Chatswood based tennis playing mother of two, tips the first central bank move is likely to be in May, with one more in the second half of the year. She sees none happening in 2019.

She concedes it does depend on the February wage growth data release.

It will be the first rate hike in eight years, coming at a time when household debt to disposable income is at record highs.

Master's wonders just how households will respond noting it will be critical for retail consumption and ofcourse the housing market.

Masters operates by the view that its always better to have a view and be wrong, than have no view at all.

 

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Mortgages Anz Bank

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