The cost of taming inflation could be crashing the economy, says HSBC economist | The Business

Subscribe: http://ab.co/1svxLVE
Read more here:

Financial markets expect the Reserve Bank will announce another interest rate hike on Tuesday, March 17, just six weeks after its first rate hike in more than two years. But markets are also anticipating a third hike from the RBA in May, at its third meeting of 2026. That would take the official cash rate back to 4.35 per cent, right where it was before the RBA started its cutting cycle in 2025. HSBC chief economist Paul Bloxham says Australia needs to have a downturn to solve its inflation problem. He says, the question is how deep it will be and how long it'll run. "There's an increasing risk that we have to have a recession in order to get inflation down," he told Kirsten Aiken on The Business. Paul Bloxham says the unemployment rate will have to rise in order to take the heat out of the economy and put downward pressure on rising prices.
#ABCBusiness

#ABCNEWS #ABCNEWSAustralia