In Tuesday’s statement that accompanied the March rate hike, Reserve Bank governor Philip Lowe said it looks like inflation has peaked in Australia and growth has slowed.
By its own admission, therefore, the RBA is hiking interest rates into a growth slowdown with falling inflation; the only question seems to be whether that means there has already been one, two or three rate hikes too many, and how ugly the recession will be. We’ll find out later this year.
