Australia Recession Risk Rises as RBA Seen Hiking More Than Fed
- Confidence tumbles Down Under as American sentiment resurgent
- Australia’s variable rates see hikes hit mortgage-holders hard
Customers sit at a cafe near Sydney Opera House in Sydney, Australia.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Reserve Bank of Australia chief Philip Lowe’s expectation of further interest-rate rises ahead has prompted economists and money markets to narrow the odds of a recession in the $1.5 trillion economy.
There is now a better than one-in-three chance of a slump over the next 12 months, a Bloomberg survey showed, up from one-in-four late last year when Lowe signaled a rate pause was in the offing. In the US, by contrast, recession probability has begun to come down.