Westpac CEO Warns Recession, Higher Rates

0:00Westpac CEO Anthony Miller just dropped a reality check, warning Australia could be heading into a recession thanks to stubborn inflation and tensions in the Middle East. In a recent interview, he said circumstances have shifted, and we got a brace for it, with inflation hitting 3.7% in February, still above the reserve bank's target. That number doesn't even fully catch the global energy crunch kicking in last month, and Miller expects more interest rate hike soon, may be pushing. To cash rate back to 4.35%, like before last year's cuts, Westpac's chief economist even forecast three more rises by August if oil prices stay wild. Households are already feeling the squeeze from higher rates, but Miller says banks like his are ready to offer breathing room on loans for struggling businesses. On housing, he blames not loose lending but tax perks and not enough affordable builds. Some prices are now $933,000, way out of reach for many first-timers. Scams are another headache, with Aussies losing $2.18 billion last year, mostly to investment

1:05ripoffs. A new government framework now forces banks, telcos and social media to team up against them, with big fines up to $50 million for slackers. Miller's stresses banks will step up where they should, but compensation only makes sense if they drop the ball. Otherwise, it's on everyone fixing the system together to keep the economy steady. You've been listening to Sydney News today, AI-powered local news.