recession risks, housing downturn after third rate hike

The negative impact of interest rate rises on Australian housing prices, household spending and the volume of dwelling investments may hurt consumer confidence and fuel the likelihood of a recession in Australia, analysts and economists say. 

The Reserve Bank of Australia raised interest rates for the third time in a row on Tuesday. 

Joining central banks around the world, the bank lifted the cash rate by 50 basis points to 1.35% after two previous rate hikes this year of 25 and 50 basis points, as the RBA tries to bring inflation under control. 

Anticipating a “peak to trough” fall in house prices between 15% and 20% in capital cities in 2023, AMP Australia Senior Economist Diana…