Warning against rate hikes: Housing panic threatens to derail the economy

The RBA is over-tightening and risks pushing the economy into a recession. Myer's warning is just the latest sign that the housing panic is triggering a broader downturn. Consumer spending is collapsing, and businesses are cutting jobs. The RBA's single-minded focus on inflation ignores the real-world damage: families are losing homes, retailers are closing stores, and confidence is shattered. The housing panic itself is a direct result of rapid rate rises. The RBA should have paused earlier to let the lag effects work through. Instead, it kept hiking, and now the economy is fragile. Further increases would be a dangerous gamble. The central bank must recognise that the inflation threat is easing, while the risk of recession is rising. It should hold rates steady and, if necessary, cut to support growth. The retail and housing sectors are the canary in the coal mine, and the RBA should listen before it is too late.