John Symond, CEO of Aussie Home Loans has warned the RBA not to raise rates again in May, stating that another increase could lead to problems in the housing market.
The Aussie chief expressed concern that a sixth increase in a row would seriously hurt consumers and lead to a further drop in home loans taken out.
“The retail sector is already suffering as a result of interest rate increases.
“There are a lot of signals suggesting that this economy will slow down and the RBA has to be very careful.”
According to Mr Symond, the RBA needs to take into account the state of the global economy when the board meets next month.
“Outside of Asia, it’s still a basket case,” he said, adding that the RBA has “a lot of reason to show caution at the moment”.
However the Chief Economist with NAB, Alan Oster, is predicting the cash rate to increase again in May, taking the official interest rate to 4.5 per cent.