Tuesday 20 September 2022 05:50 AM Reserve Bank 'risks tipping Australia into a recession' with its aggressive ... trends now
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Aggressive rate hikes could tip Australia into a recession, the country's big banks have warned the Reserve Bank.
Borrowers endured five consecutive monthly interest rate increases since May, taking it to a seven-year high of 2.35 per cent.
Interest rates have not escalated this quickly since 1994, which CommSec economists Craig James and Ryan Felsman said almost sparked a recession.
'The economy avoided recession in 1995 after the rate hikes, but it went close, with zero growth in the March quarter, followed by growth of just 0.4 per cent in the June quarter,' they said.
Minutes of the Reserve Bank's September meeting - which voted to hike rates by another 0.5 percentage points - mentioned the word inflation 41 times.
The Reserve Bank is being warned its aggressive rate hikes could tip Australia into a recession. Borrowers have since May endured five consecutive monthly cash rate increases, taking it to a seven-year high of 2.35 per cent (pictured is Governor Philip Lowe)
'In considering the policy decision, members noted that inflation in Australia was at
