At Tuesday’s meeting, the Reserve Bank board should ignore incessant demands for cash rate increases that would plunge the economy into recession. One Recessionista has gone so far as to accuse RBA governor Michele Bullock of being beholden to the Albanese government, as evidenced by her refusal to lift the cash rate further.
Australia has been in a per capita recession since early last year, its strong post-pandemic immigration keeping it out of a popularly defined recession of two successive negative quarters of economic growth.
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Craig Emerson is managing director of Emerson Economics. He is a distinguished fellow at the ANU, director of the Australian APEC Study Centre at RMIT and adjunct professor at Victoria University’s College of Business.
