Australian Government Says Recession Won’t Happen Amid Uncertainty in Interest Rate Movements

Minister for Finance Katy Gallagher during question time in the Senate chamber at Parliament House in Canberra, Australia, on June 14, 2023. AAP Image/Mick Tsikas

The Australian government has once again rejected the possibility of the economy falling into a recession following the Reserve Bank’s latest interest rate decision.

On July 4, the Reserve Bank of Australia (RBA) announced a pause on its interest rate hiking cycle, effectively maintaining the official cash rate at 4.1 percent throughout the month.