RBA is engineering an economic slowdown but at what cost? Ian Verrender explains | The Business

By ABC News (Australia)

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Remember the good old days? The time when life was simple and opportunities endless? Except of course, often they aren't always so great. Last week, Reserve Bank governor Michele Bullock batted away the idea that a recession was inevitable but finally conceded that unless inflation was brought to heel in a timely manner, it was a possibility. "If we don't address this, inflation will get worse, and interest rates will have to be higher, and the economy in a worse position in order to address that," she said. "So, it's not our base case, I don't want it, but if inflation expectations get away, that's the sort of scenario you might be looking at." Pandemic aside, we haven't experienced a recession — one where the catalyst was rising interest rates — since the early 1990s. It's a word that strikes fear into many in the community and for good reason. ABC chief business correspondent explains why unemployment needs to rise to tame inflation and what that means for the economy. "I mean tha

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