CBA looks in rear vision mirror and sees no recession

The probability of an Australian recession is estimated at only 10 per cent over the next year in the eyes of Commonwealth Bank of Australia economist Michael Blythe, who argues the one-in-three risk that some experts have predicted is too bearish.

…”Some of the arguments for recession look weak on closer inspection,” the economist argued. This is because policy settings in Australia are accommodative, the Reserve Bank of Australia has the capacity to ease rates further, the currency is low enough to cushion growth, and some parts of the economy are sufficiently strong to offset some of the loss in mining investment.