Australia’s Treasurer Jim Chalmers said on Wednesday, they are not foreseeing a recession for the Australian economy despite a potential downturn.
Key quotes
“The expectation of the Treasury forecasters is higher interest rates combined with difficult global conditions will slow our economy considerably, but they don’t expect at this point a recession here in Australia.”
“There is of course, as the RBA governor acknowledged in the statement yesterday, the fact that when interest rates go up, people with a mortgage feel it immediately but the impact on the economy takes a little while to flow through.”
Meanwhile, Stephen Jones, the Assistant Treasurer, said that “We think that inflation has peaked and it is starting to turn around.”
“So we’re hoping that this is, if not the last, then nearly the last of the interest rate increases,” Jones added.
Market reaction
AUD/USD is defending minor gains at around 0.6965 on the above comments. The spot is up 0.11% on the day.