abc.net.au/news/pm-economy-optimism-as-interest-rates-rise-recession-warning/102455906The prime minister has expressed his "optimism" about the future of the Australian economy, even as economists warn of the rising prospect of a recession.Anthony Albanese says he is optimistic about Australia's economyAnthony Albanese was speaking in Sydney for the first time since the Reserve Bank lifted the cash rate to 4.1 per cent, and left the door open to further rate rises.
RBA governor Philip Lowe has warned the economy has a "narrow path" back to normality, in attempting to drive down inflation without heading into a recession. Some economists have suggested that path is becoming more difficult to tread, pointing to persistent inflation in many parts of the economy, while growth slowed to just 0.2 per cent in the most recent quarter."It's certainly gone up; with every rate hike it goes up," he told ABC Radio.
"We're at the point now where I think the idea that the RBA can keep the economy on an even keel has now been further diminished." Mr Lowe has acknowledged the substantial impact of rising rates on households, but warned the consequences of longer-term inflation would be much worse.