Those calling for higher interest rates in Australia should be careful of what they wish for

‘One of the forgotten aspects of the 1990s recession is that when inflation was falling the RBA was madly cutting rates in a desperate (and failed) attempt to prevent a recession.’ Photograph: David Gray/Reuters

It seems that some people really want a recession. The estimates of inflation not falling below 3% until the end of next year has led some commentators to demand higher rates as though there is an ability to have inflation drop quickly while at the same time delivering the hoped for economic “soft landing”.

After the RBA’s decision on Tuesday to keep rates steady, you would be forgiven for thinking that a rate rise is imminent. Other than Peter Hannam, who maintained a level of calm, some media organisations were suggesting rate rises are now much more likely and that there is a sense of doom ahead for inflation.