The United States, the UK and Europe are heading for recession as central banks put the challenge of crushing inflation ahead of supporting economic growth, TCorp chief economist Brian Redican has warned.
“Slow growth and high inflation would be the worst possible outcome for the global economy,” Mr Redican said. “I certainly think it’s right for central banks to take that risk seriously and start raising interest rates.”He admitted this also meant central banks faced a greater risk of a policy mistake by tightening too far.
He forecasts the 1.85 per cent overnight cash rate to rise to between 2.5 per cent and 3 per cent by the end of the year, and pause after that.“In 2023, the Reserve Bank will be much more responsive to what’s happening in the economy, rather than plough ahead with further interest rate increases.”economic forecasts released last week
Mr Redican spent more than a decade as Macquarie Bank’s chief economist before joining TCorp in 2014. Fed funds futures traders are giving a 63 per cent chance to another 0.75 percentage point rate increase in September, taking the Fed funds rate to 3.5 per cent by Christmas, from the 2.25 per cent to 2.5 per cent range now.
When EVER in history has this occurred? Labor stooge that doesn't know the PAIN that's about to happen AFR part of Left wing Nine media Go to Murdoch for truth 😂 You'll eat your words 😖