Australia at risk of recession amid rate hike fears

Economists are warning a rate hike at next month's ­Reserve Bank meeting could put Australia at risk of a recession. A new report from Deloitte suggests the rate rise would erase the benefits of Labor's stage three tax cuts and pay rises for thousands of Australians. Some economists say unless monthly inflation figures buck the trend and decline, it would basically force the RBA to raise rates to 4.6 per cent, meaning more pain for mortgage holders.