Australians are left both relieved and anxious, as the Reserve Bank of Australia (RBA) has opted to hold its ground on interest rates for the fourth consecutive month. While this decision may provide some respite for the general public, experts are cautioning that the country’s economic woes might not be over just yet.
The central bank’s decision to pause interest rate hikes has immediately put pressure on the Australian dollar, causing it to slide in the foreign exchange market.
A glance at the 24-hour chart depicting the Australian dollar’s exchange rate against the US dollar paints a picture of volatility. Overnight, the Australian dollar dipped below the 63-cent mark, hitting a low of 62.84 cents before seeing a modest rebound. 
Source: ABC News
This downward trend in the Australian dollar’s value follows a broader pattern that has been unfolding since July when it came close to reaching the 5-dollar mark against the US dollar.
However, the question of whether the Australian economy is on the verge of a recession is not one that can be answered solely by examining domestic factors. Experts such as James Morley from the University of Sydney emphasize the significance of external economic conditions, particularly the economic situations in China and the United States. Should these economic giants face sluggish growth or deterioration, Australia is likely to bear the brunt, potentially triggering an economic recession on its own shores.
While a recession could lead to a decrease in Australia’s inflation rate, the overall economic outlook remains far from optimistic.
Housing prices may go up in a blink of eye | Interest rate predictably increases
A survey conducted by Finder suggests that real estate prices in Australia are poised to continue their upward trajectory in the coming year. This prediction comes even though millions of Australians are grappling with mortgage loan pressures. The series of interest rate hikes has elevated Australia’s official cash rate from a historic low of 0.1% to a substantial 4.1%, marking the highest point since 2011.
Investors are making their way back into the real estate market, causing housing prices to steadily climb. Projections indicate that Perth is expected to witness the most significant increase in housing prices at 6%, with Sydney and Brisbane not far behind at an estimated 5% rise. If these forecasts materialise, the average price of a standard house in Sydney is expected to reach a staggering 1,124,957 Australian dollars by the close of next year.
As Australia navigates the complexities of economic recovery, the next few months will be closely watched to determine whether the RBA’s decision to halt interest rate hikes will have a stabilizing effect or if external economic pressures will continue to cast a shadow of uncertainty over the nation’s financial landscape.
Source: wikipedia
Source: yeeyi.com.au, ABC News, Wikipedia