RBA rules out Australian recession despite rising unemployment

Summarised from 2 outlets · Updated 28 Oct, 04:32 · Archive

The Reserve Bank of Australia has said the economy shows no signs of recession in the near term, despite unemployment rising to 4.7 per cent.

The Reserve Bank of Australia has ruled out the risk of recession over the next six months, despite unemployment climbing to 4.7 per cent in September from 4.1 per cent at the start of 2026. The remarks came during a senate estimates hearing on economics, where Greens senator Nick McKim pressed RBA leadership about the national economy amid rising costs and job losses.

RBA chief economist Sarah Hunter told the committee that monitoring a wide range of real economy indicators showed none suggesting recession. "At the moment none of those indicators are suggesting that the economy is in or is heading into a recession in the near term," she said.

Governor Michele Bullock addressed questions about whether interest rates remain an effective tool for controlling inflation. She acknowledged supply shocks but emphasised the inflation problem has a demand component. "We are actually responding to a demand component and that has to be extremely clear here," she said. She added that monetary policy remains fit for purpose in keeping demand and supply aligned.

RBA rules out Australian recession despite rising unemployment — Image: The West Australian

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How it is being reported

Reserve Bank rules out Australian recession as governor Michele Bullock issues inflation warningThe RBA’s top brass have used their time in front of a senate committee to make a surprising call on whether Australia will go into a recession.The West Australian · 28 Oct, 03:59
Reserve Bank rules out Australian recession as governor Michele Bullock issues inflation warningThe RBA’s top brass have used their time in front of a senate committee to make a surprising call on whether Australia will go into a recession.Perth Now · 28 Oct, 03:59

In this story: Reserve Bank of Australia · Michele Bullock · Sarah Hunter · Nick McKim · Australia

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