Bloxham Warns: Two More Rate Hikes Could Push Australia into Recession

HSBC chief economist Paul Bloxham is warning that Australia's economy could be heading for a difficult few months, potentially even a recession. He believes the Reserve Bank of Australia (RBA) may need to lift interest rates again, despite signs of slowing growth.

Bloxham expects economic growth to come close to stalling in the December and March quarters, which has him putting the risk of a technical recession at close to 50%. A technical recession occurs when the economy contracts for two consecutive quarters.

The RBA's next interest rate decision is scheduled for September 29th. However, they will have to make their decision without another inflation reading, as August's figures aren't due until Wednesday, one day after the board meets.