Treasurer Downplays Recession Fears After RBA Warns of Downturn Risk

‘The Reserve Bank’s forecasts are not forecasting a recession in our economy. Neither are the government’s,’ said Treasurer Jim Chalmers.

Australian Treasurer Jim Chalmers is seen during a Federal Cabinet meeting in Perth, Australia, on June 3, 2025. AAP Image/Richard Wainwright

Australian Treasurer Jim Chalmers has moved to calm fears of a looming recession after the Reserve Bank of Australia (RBA) earmarked the possibility after raising interest rates a second time.

The central bank on March 17 lifted the cash rate to 4.1 percent with blame placed on disrupted global energy prices linked to the Iran conflict.