Australia's economy set for 'sharper, longer slowdown'
UKPulse Money Desk
Major bank economists predict a sharper and longer economic slowdown due to persistent inflationary pressures.
- The Reserve Bank is expected to hit mortgage holders with a fifth interest rate hike on Tuesday.
- Real GDP is forecasted to drop to 1% by the middle of next year, nearly half the previous estimate of 1.8%.
Australia's economy is set for a 'sharper, longer slowdown', major bank economists say, as the Reserve Bank is forced to keep interest rates higher to rid the nation of persistent inflationary pressures.
The RBA is widely expected to hit mortgage holders with a fifth rate hike on Tuesday, in a move that will push the cash rate to its highest since 2008 amid rising worries the economy could even be tipped into recession.
Why this matters: The economic slowdown may lead to higher unemployment and a decrease in consumer spending.
What this means for you: If you're a mortgage holder, you may face higher repayments and increased financial pressure.