One by one, economists are abandoning their interest rate forecasts for next month after US President Donald Trump upended financial markets with his “liberation day” tariffs.
Earlier this month, a dozen were tipping the Reserve Bank of Australia would keep rates on hold in May. Today, just four are sticking with that view.
Warren Hogan is the latest of the hawks to capitulate. The chief economist at Judo Bank has long argued against lowering borrowing costs because of still-elevated inflation at home, but he has joined the majority in tipping the RBA will cut rates in May because of the heightened uncertainty from the White House.
Source: https://www.afr.com/markets/debt-markets/just-four-economists-expect-the-rba-to-stand-pat-on-rates-20250415-p5lrs2