Société Générale have a note out on the Reserve Bank of Australia, their central point being that the RBA is too optimistic in its growth outlook.
Soc Gen expect that economic growth in Australia is going to slump, to surprise to the downside. The RBA rate hikes impact is still feeding through into the economy.
- Soc Gen says the next move the RBA is likely to be a cut
- Their base case is a cut in Q4 of 2024
ICYMI:
An interesting point from Soc Gen on slowing growth that’ll lead to an (eventual) rate cut. It’s a point I’ve seen made with respect to the Federal Reserve also.
Reserve Bank of Australia Governor Bullock
This article was written by Eamonn Sheridan at www.forexlive.com. Source