Expert economist shares dire warning no Aussie wants to hear: 'That's going to ... trends now

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An expert economist has warned Australia could head into a recession if inflation is not brought under control and interest rates are not increased.

Judo Bank chief economic adviser Warren Hogan warned the Reserve Bank of Australia could raise interest rates this year in a blow to mortgage holders.

He said Australia hadn't increased rates as high as other countries and 'that last little bit' could get inflation and the cost-of-living crisis under control.

However, Mr Hogan was also weary of rates going too high and sending the economy free-falling into a recession.

An increase would be yet another hit for mortgage-holders after they were raised by 1.25 per cent across 2023 and predicted to raise another three times this year.