Australia needs a downturn and it could be here, says HSBC chief economist | The Business | ABC NEWS

All of the Australia's major banks are tipping the Reserve Bank of Australia will leave interest rates on hold when it finalises its meeting on Tuesday. The RBA is one of four big central banks due to deliver interest rate decisions this week. While the Bank of Japan is expected to raise its official rate by 25 basis points on Tuesday, the RBA, along with the US Federal Reserve and the Bank of England are tipped to leave rates unchanged.
HSBC Australia's chief economist, Paul Bloxham is among the leading economists predicting the central bank will leave rates on hold on Tuesday. He is tipping two rate cuts in mid to late 2027.
Mr Bloxham says while he believes a downturn is needed to slow the economy and bring down inflation, - and there are signs that may already be happening - he doesn't have a recession pencilled in as his central case.
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