How close is Australia to a recession?
How close is Australia to a recession?
The Reserve Bank of Australia has raised interest rates to 4.85 per cent, making Australia the world’s top country for number of interest rate hikes in 2026.
The rate rise came with furious backlash from Australians, unions, welfare groups and even politicians, who had urged the RBA to be cautious.
During her press conference, RBA governor Michele Bullock made it clear the rate hike was not due to the direct impact of oil prices on inflation and pointed to “domestic capacity pressures” evident before the rise in oil prices.
There are growing fears Australia will enter an interest rates-based recession for the first time since the early 1990s.
How close are we to that, and what would it look like? Here’s a breakdown.
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