Shoppers could face a fresh wave of price rises as manufacturers struggle to cope with demand amid labour shortages and higher costs.
Analysts are increasingly concerned the Reserve Bank’s interest rate rises will hit vulnerable home buyers and drag down the economy next year.
Australia’s economy is expected to avoid recession in the coming year even as its top trading partner,China,slows sharply on COVID-19 restrictions and rapid US policy tightening raises risks of a downturn there.
It will take a lot of luck for the RBA and other central banks to lower inflation without plunging their economies into deep and painful recessions. But not all recessions are the same.
The RBA is under huge pressure from the financial markets to keep jacking up rates but it must hold its nerve and do no more than necessary.
Another major property developer has collapsed into receivership,threatening the redevelopment of the $600 million historic Nylex site on Melbourne’s Yarra River.
Slowing demand and sinking markets put an end to a period of record-setting profits for the America’s biggest banks,but that doesn’t mean a recession is imminent.
Even in these “unprecedented” times,it’s not all doom and gloom on the economic front.
The RBA and the US Federal Reserve Board are reading from the same playbook. They will do whatever it takes to bring inflation under control,even if it means recessions.
As interest rates rise and inflation bites,Aussie retailers are being warned they will soon face the toughest conditions in more than a decade.
The latest World Bank assessment of the state of the global economy and what the future holds makes for depressing reading. It may not have gone far enough.