Another rate rise ‘cannot be justified’ and would put Australia’s economy at risk, economists warn

Deloitte Access Economics report argues a return to monetary tightening would wipe out benefits of tax cuts and wage gains

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A further rise in interest rates would put Australia’s economic recovery at risk and wipe out the benefits of tax cuts and real wage gains, economists have argued as key decisions loom.

June quarter inflation data, due to be released by the Australian Bureau of Statistics next week, represents a fork in the road for policymakers, according to Deloitte Access Economics partners Stephen Smith and Cathryn Lee.

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