Australian economy faces sharper, longer slowdown as fifth rate hike looms
· Business · The Guardian, ABC News (AU)
Australia's central bank is widely expected to raise interest rates for a fifth time on Tuesday, pushing the cash rate to its highest level since 2008 amid persistent inflation. The Reserve Bank's aggressive stance is driven by a combination of a prolonged Middle East conflict and collapsing house prices, which together are pushing the economy toward recession. Economists at CBA and NAB have revised growth forecasts down, projecting real GDP growth of just 1% by mid-next year, nearly half previous estimates. Joblessness is expected to rise significantly, with NAB forecasting unemployment could reach 5.4% by the end of next year.
Why it matters
Mortgage holders face further repayment increases, while broader economic growth slows, threatening job security and consumer spending across Australia.
Read the original report — The Guardian
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