RBA Rate Hike Could Spark Technical Recession Fears

The Reserve Bank of Australia (RBA) is expected to raise interest rates on Tuesday, with the market overwhelmingly anticipating a 0.25% increase in the official cash rate.

This would be the first rate hike since May, and economists warn that two to three further rate hikes over the next six months could push the economy into a technical recession next year.

The interest rate futures market has priced in a high probability of these additional rate hikes, with a cash rate target of 5.10% by mid-2024.