Australia’s Recession Risk Spikes as RBA Peak Rate Seen at 4.35%
- Economists see chance of a downturn at 50%, up from 35% in May
- Narrowing of yield curve suggests recession all-but inevitable
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Australia’s risk of an economic downturn jumped to the highest level since the pandemic, a Bloomberg survey showed, with the Reserve Bank now expected to raise interest rates again to try to gain control over inflation.
The chances of a recession in the next 12 months climbed to 50% this month, up from 35% in May, Friday’s survey showed. Outside the first half of 2020, when Australia’s economy was driven into reverse by Covid lockdowns, the nation has avoided a recession for 32 years.