On seeing the latest GDP figures, the best that you can say is that you hope the Reserve Bank is happy. The economy is slowing as the impact of the interest rate rises has hit households so strongly that, taking into account population growth, Australia’s economy didn’t grow at all in real terms in the last three months of 2022.
What an achievement! Who would have guessed that raising the cash rate by 300 basis points from 0.1% in May to 3.1% in December would slow the economy so much?
