Finance guru Mark Bouris has claimed that Australia has been in a recession for the past 18 months with the standard of living the worst its been in two years.
The Wizard Home Loans founder made the grim admission on Ben Fordham’s 2GB on Tuesday.
‘On a per capita basis we have been in a recession for about 18 months,’ he said.
‘Given that we have had a million people come into the country in the past two years we are definitely in recession on a per capita (basis).
‘The standard of living per person in this country is lower than it was two years ago.’
A per capita recession is defined when the standard of living falls despite the economy growing.
The economic growth is propped up by an increase in the population – however the hike puts a strain on goods and services.
Mr Bouris made the admission hours before the Reserve Bank of Australia was due to hand down its latest interest rate decision.
Finance guru Mark Bouris has claimed that Australia has been in a recession for the past 18 months
The cash rate is currently at a 12 year high of 4.35 per cent.
Mr Bouris said his message to the RBA had been consistent.
‘I have been saying for a long time, our RBA has been going too hard for too long, give it a rest,’ he said.
The minutes of the RBA’s most recent meeting warned inflation was still high, forestalling the possibility of an interest rate cut and hinting further hikes could be on the cards.
The consumer price index grew by 3.8 per cent in the year to June, putting it even further above the Reserve Bank’s 2 to 3 per cent target.
The latest headline inflation numbers, released on Wednesday, are even worse than the March quarter’s 3.6 per cent annual pace and marked the first quarterly deterioration since 2022.
The Australian share market suffered its biggest two-day plunge in more than two years – wiping off $45billion in one day – as investors feared the American economy sinking into recession.
Home mortgage mogul Mark Bouris has warned that the RBA’s rate rises have crippled the Australian economy
Mr Bouris said with the recent steep drops in global share markets in Australia he did not anticipate the RBA would raise rates this month.
‘I reckon what they are going to say is, “We are not going to put rates up, but we will watch international affairs, what is going on in the rest of the world and remain resolute in getting inflation down to two or three per cent – which means we will pull the lever up if we have to”,’ he said.