Is Australia heading to recession? Some said next 3 months are crucial…
Think of it like this: we are in a car that has been braking sharply as a result of higher interest rates, higher petrol prices, diminishing household wealth and fear of what might lie ahead. Now the car has slowed sharply, the question is whether we, the decision-makers of the economy, keep our foot on the brake, and slow down even further, or release it to keep cruising at our present speed.
The Reserve’s goal was the latter: if Australia’s growth in output slows to about 2.5% 2% excluding farms and mining it believes inflation will gradually crawl back within its target zone of 2% to 3%.
Are the decision-makers, the good driver? Not too sure.