Could the RBA’s rate rise send Australia into recession?

<p>The Reserve Bank has raised interest rates again. The cash rate is now 4.35%, after the third rate hike in a row.&nbsp;</p> <p>For Australians already stretched by the cost of living, it means another hit to mortgage repayments, rents and household budgets.&nbsp;</p> <p>And while the decision was widely expected, the reason behind it is more complicated. Some economists are calling it the &ldquo;Hormuz hike&rdquo;, a response to global oil prices, the war in Iran and fears inflation could skyrocket.</p> <p>Today, economist and co-CEO of the Australia Institute, Dr Richard Denniss, on why the Reserve Bank is making Australians pay more to contain inflation, and the risk that it goes too far.&nbsp;</p> <p>&nbsp;</p> <p>If you enjoy <em>7am</em>, the best way you can support us is by making a contribution at <a href="http://7ampodcast.com.au/support">7ampodcast.com.au/support</a>.</p> <p>&nbsp;</p> <p><strong>Socials:</strong><strong> </strong>Stay in touch with us on <a href="http://www.instagram.com/7ampodcast">Instagram</a></p> <p><strong>Guest:</strong> Economist and Co-CEO of the Australia Institute, Dr Richard Denniss</p> <p><strong>Photo:&nbsp;</strong>AAP Image/Dean Lewin</p><p>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.</p>