Economist’s fear as RBA considers rate rise

Leading economists warn the Reserve Bank risks plunging Australia into an unnecessary recession as it considers a sixth consecutive rate rise this week.

AMP Capital chief economist Shane Oliver has told The Australian there’s a risk overzealous action from the RBA may mean a “recession we shouldn’t have to have”.

Senior economics correspondent for The Age, Shane Wright, thinks the RBA would be wise to only raise the cash rate by .25 per cent on Tuesday.

“The big problem of course is inflation,” he told 3AW Breakfast.

“It’s believed the Australian Bureau of Statistics new measure of monthly inflation is running at about six or seven per cent.”

Press PLAY below to hear more about what’s expected to come from the RBA board’s meeting on Tuesday