The Australian economy is facing a sharp slowdown that could drive up unemployment next year, with growing fears the Reserve Bank may lift interest rates too high too quickly on heavily indebted home buyers as it fights to bring inflation under control.
But AMP senior economist Diana Mousina said there was now a real risk the Reserve Bank could be forced into cutting interest rates next year to support an economy weakened by its aggressive increases in rates through 2022. “We have become more confident in our above-consensus RBA rate hike forecasts and our forecast that Australia will slide into recession in 2023,” he said.
The index has been affected by the aggressive increase in interest rates, a sharp fall in commodity prices which have slipped 20 per cent in the past three months, moderate increases in working hours and a slowdown in American industrial production.
swrighteconomy Yet we still spending.
swrighteconomy the good times are still on in restaurants
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