Australia Recession Risk Rises as Rates Seen Higher for Longer
This article is for subscribers only.
Australia’s risk of an economic downturn edged higher in May, a Bloomberg survey showed, as the Reserve Bank is expected to keep interest rates elevated for an extended period in order to beat back inflation.
The chances of a recession in Australia climbed to 38% from 35% in April, according to 14 economists. A broader poll of 35 analysts conducted over May 18-23 showed that the RBA will likely hold its key rate at the current 3.85% in the first quarter of 2024, then begin easing in the second — three months later than in the previous survey.