The Reserve Bank’s November rate hike was “overkill”, economists have cautioned, after fresh GDP data revealed a sharp decline in household spending on non-essential items such as cars, clothes and eating out in the final three months of 2023
After new figures this week confirmed a deepening of Australia’s per-capita recession, analysts have lashed RBA governor Bullock’s latest rate hike.
Were it not for Australia’s record migration intake, which bolstered the nation’s population by almost 650,000 last year, economic growth would have contracted. “It does look as if it was a bit like overkill at the time and now you’ve got the household sector which has virtually stalled and is going backwards,” Dr Oliver said.
The November rate hike — which freshly minted RBA governor Michele Bullock presided over — was branded “unnecessary”. Picture: NCA NewsWire / Martin Ollman
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