Rate Hike Sparks Warning of Global Financial Depression

Australia's latest interest rate hike has sparked warnings from a property expert that it could be a sign of an impending global financial depression. The Reserve Bank of Australia raised the cash rate to 4.6 per cent, its highest in 15 years, with Nathan Birch predicting rates will drop towards zero per cent within 12 months.

Birch, founder of B.Invested and owner of over 400 homes, attributed the rate hike to a global debt crisis rather than government policy. He claimed several major economies are heading towards hyperinflation, including Japan and the US.

The US Federal Reserve raised interest rates from 3.75 per cent to four per cent in September to combat inflation, with Chairman Kevin Warsh stating that 'inflation is too high and has been for too long.'