Next RBA rate move more likely to be cut than hike: Klaus Baader

Next RBA rate move more likely to be cut than hike: Klaus Baader
Next RBA rate move more likely to be cut than hike: Klaus Baader

Hong Kong based, Societe Generale's chief economist for Asia Pacific, Klaus Baader has joins the growing band of senior economists who foresee a rate cut in Australia in 2019.

He has issued a statement in light of recent economic events that a cash rate cut is more likely than a hike in Australia.

Klaus Baader said since the RBA's previous meeting in December, prospects for the global market have deteriorated markedly, several other central banks have shifted their guidance - some rather radically - "and Australia's economy looks notably less strong than it did then (two months ago)."

"The RBA's latest forecasts will illustrate this.

"Given this backdrop, we have ditched the view that rate normalisation would begin in May of this year."

"Indeed, with the US economy likely so slide into recession in 2020, we believe that the next RBA rate move is more likely to be a cut than a hike," he concluded.

Klaus joined Societe Generale in July 2009 and was Chief Euro Area Economist in London before moving to Hong Kong in 2012.

He had been Chief Europe Economist at Merrill Lynch since 2006 after working at Lehman Brothers, UBS and Deutsche Bank.

Klaus began his career at Salomon Brothers in 1989, after studying Economics and Political Science at the University of Cologne and the London School of Economics.

He received his B.Sc. in Economics from the LSE in 1988, and completed a Master course in Economics in 1989.

Tags: 
Rba Rate Decision cash rate

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