The Australian government has once again rejected the possibility of the economy falling into a recession following the Reserve Bank’s latest interest rate decision.
On July 4, the Reserve Bank of Australia (RBA) announced a pause on its interest rate hiking cycle, effectively maintaining the official cash rate at 4.1 percent throughout the month.
Since May 2022, the RBA has embarked on an aggressive monetary tightening policy to fight off inflation, resulting in the official cash rate surging from the historic low of 0.1 percent to the current level.
While the bank said inflation had peaked, it warned that further interest rate increases might be implemented in the coming months if inflation did not drop fast enough….