Jim Chalmers confident Australia will avoid recession despite warnings of more interest rate rises

Treasurer Jim Chalmers acknowledged ‘tricky’ economic conditions but says the government’s expectation is that Australia will dodge a recession. Photograph: Mick Tsikas/AAP

The treasurer Jim Chalmers says there are “very encouraging” signs on power prices falling and is still confident Australia will avoid a recession despite continuing interest rate rises.

Last week in its first meeting for the year, the Reserve Bank increased the cash rate for the ninth time in a row to 3.35% and warned it was considering even more interest rate rises in coming months.