06 Aug Recession fears & share mkt falls – what it means for the RBA & investors?
Key Points
- The risk of recession is high.
- The falls in shares and commodity prices reflect this.
- Lower growth and recession would mean a high risk of the inflation rate undershooting the RBA’s inflation target.
- The RBA should be considering cutting interest rates.
- Share market volatility is bad news but the best approach for most investors is to stick to a long-term strategy.
