RBA sees economic growth dipping to 1.2pc by year's end but worries about house price rebound, resilient consumers

The Reserve Bank has downgraded its forecasts for Australia's economy as the impact of aggressive interest rate rises to fight inflation begins to take its toll.

READ THE RBA's QUARTERLY STATEMENT ON MONETARY POLICY

Economic growth is expected a slow to just 1.25 percent by the end of the year with unemployment on track to tick higher to 4pc though inflation is likely to fall from the current 7pc annualised to 4.5pc.

So how close might Australia go to a recession?

My analysis from RBA headquarters in Sydney on The World Today.