Reserve Bank worries about inflation pressures building, risk of a recession
The Reserve Bank of Australia is increasingly concerned about rising inflation pressures and the potential risk of a recession. Assistant governor Sarah Hunter highlighted that inflation expectations are building, which could complicate the central bank's ability to manage inflation without triggering a downturn. The RBA is closely monitoring the housing market and other economic indicators as it navigates these challenges.
- ▪RBA assistant governor Sarah Hunter expressed concerns about rising price pressures in the economy.
- ▪Inflation expectations can influence consumer behavior, potentially leading to higher demand and prices.
- ▪The RBA is monitoring developments in the housing market following recent tax changes.
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Reserve Bank worries about inflation pressures building, risk of a recessionBy business correspondent David TaylorTopic:InflationTue 19 May 2026 at 3:19pmTue 19 May 2026 at 3:19pmTue 19 May 2026 at 3:19pmSarah Hunter has spoken at an investment gathering in Sydney. (ABC News)In short:Reserve Bank assistant governor (economic) Sarah Hunter has raised increasing concerns about rising price pressures in the economy.If so-called "inflation expectations" continue to build, policymakers could lose their ability to lower inflation without producing a recession.What's next?The RBA says it will closely monitor developments in the housing market following tax changes to assets in the federal budget.abc.net.au/news/reserve-bank-sarah-hunter-mentions-recession-inflation/106695446Link copiedShareShare…
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