The risk of Australia’s economy slipping into recession has risen sharply, after the central bank surprised markets this week by raising rates and warned it could tighten again to tamp down on high inflation even at the cost of preserving jobs.
For a year, Reserve Bank of Australia Governor Philip Lowe has been talking of successfully navigating a narrow path to lower inflation while keeping unemployment near 50-year lows.
But this week the governor’s tone changed.
Read More : Australia’s Recession Risk Rises as RBA Highlights the Bumpy Path to Achieve Low Inflation