Could the RBA’s rate rise send Australia into recession?
May 6, 2026 •
The Reserve Bank has raised interest rates again. The cash rate is now 4.35%, after the third rate hike in a row.
For Australians already stretched by the cost of living, it means another hit to mortgage repayments, rents and household budgets.
And while the decision was widely expected, the reason behind it is more complicated. Some economists are calling it the “Hormuz hike”, a response to global oil prices, the war in Iran and fears inflation could skyrocket.
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.
If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.
Could the RBA’s rate rise send Australia into recession?
1905 • May 6, 2026
Could the RBA’s rate rise send Australia into recession?
The Reserve Bank has raised interest rates again. The cash rate is now 4.35%, after the third rate hike in a row.
For Australians already stretched by the cost of living, it means another hit to mortgage repayments, rents and household budgets.
And while the decision was widely expected, the reason behind it is more complicated. Some economists are calling it the “Hormuz hike”, a response to global oil prices, the war in Iran and fears inflation could skyrocket.
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.
If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.
Guest: Economist and Co-CEO of the Australia Institute, Dr Richard Denniss
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