Morgan Stanley’s Australia Head Sees Just One More RBA Rate Hike
- Richard Wagner says the ‘consumer is hurting,’ dealmaking hit
- RBA lifted rates to 4.1% on Tuesday, the highest since 2012
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Australia’s central bank will likely raise interest rates just one more time before pausing as the tightening cycle hits household spending and corporate dealmaking, according to Morgan Stanley’s country head.
“I think the consumer is hurting and has already turned,” Chief Executive Officer Richard Wagner told Bloomberg Television on Wednesday. “It takes a few months for those rate rises to drain bank accounts so we’re really talking about a third-quarter phenomenon where the consumer will have adjusted significantly and then we’ll be on pause.”