Inflation not a threat and another interest rate cut needed: CommSec’s Craig James
On the back of yesterday’s news that consumer confidence has fallen to levels last seen before the November and December rate cuts CommSec chief economist Craig James says Australians “risk talking ourselves into a growth recession”.
“[This is] a period of sub-trend economic growth, which feels in many respects like a recession but doesn’t involve the economy actually going backwards,” says James.

The March Westpac–Melbourne Institute Index of Consumer Sentiment showed a slight increase in housing sentiment but an overall five-point drop in consumer confidence to a level of 96.1, meaning pessimists outweigh optimists.

It also revealed that tenants were a lot more pessimistic (down 10.8%) than households with a mortgage (down 6.8%) and those who own their homes outright (flat).