Australia could be plunged into chaos with spiralling unemployment and poverty if the nation goes into recession, leading economists have warned.
One of Australia’s ‘Big Four’ banks is concerned aggressive interest rate hikes to tackle worsening inflation could tip Australia into a recession.
The Reserve Bank of Australia is widely expected to announce its sixth consecutive monthly rate hike today, with a predicted 0.5 percentage point rise.
This would take interest rates to a nine-year high of 2.85 per cent – compared with a record-low of 0.1 per cent as recently as early May.
A 50 basis point rate rise on Tuesday means a borrower with an average $600,000 mortgage would see their monthly repayments climb by $179 to $3,145.
Borrowers are already copping the steepest rate rises since 1994 with economists at CommSec, the Commonwealth Bank’s online broking arm, warning steep rate rises 28 years ago came close to tipping Australia into a recession again.
The futures market is expecting…