Economic consultant Jonathan Pain says Australia is likely to face at least four interest rate rises in 2022, as the global economy emerges from the pandemic.
Speaking at an Urban Development Institute of Australia WA event today, the JP consulting director said central banks around the world had injected $32 trillion of monetary and fiscal stimulus in the past two years.
He described the pandemic as creating “remarkably unprecedented economic conditions”.
“We are now moving from abnormal to normal, central banks have to reverse the provision of liquidity we have seen over the past two years,” Mr Pain said.
“It is now well past the time for a normalisation of monetary policy in Australia.”
Mr Pain said he anticipated that, after the federal election, likely to be held in May, the Reserve Bank of Australia would introduce its first rate rise of the year.
He said that was likely to be followed by three further rises, each about 0.25 basis points.
Mr Pain added that there was a likelihood of subsequent rate rises this calendar year, and in his view four was the minimum number.
