The Reserve Bank of Australia is likely to continue with its intended rate hike, despite the inherent risks. This is the view of Isaac Poole from Oreana Financial Services, who says that although the economy is demonstrating some resilience with inflation rates overshooting the target, there is a possible downturn in the first half of the coming year caused by these escalating risks.

Isaac cautions about a severe economic deceleration and promotes a hiatus in rate hikes to provide the economy an adjustment period. He emphasizes the importance of U.S. manufacturing Purchasing Managers’ Index (PMI) and unemployment claims as signals of an impending recession. Isaac suggests not giving in to the ongoing equity rally fueled by a minor part of the U.S. market, and instead, supports investing in government bonds as a safeguard against the downside. He also states that the tech sector appears to be in a risky position, highlighting the necessity for measures to shield against possible threats.

(Source: Ausbiz)

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