TIPS

Forecasts of another interest rate increase by the Reserve Bank of Australia are fuelling concerns that the economy could tip into recession. Observers warn that tighter monetary policy, aimed at curbing inflation, risks slowing growth and pushing borrowing costs higher for households and businesses. Analysts are watching the central bank's next decision closely to gauge how far it will go.

The US Federal Reserve has raised interest rates again, prompting warnings that a recession could follow. Commentators argue the tightening will raise borrowing costs for households and businesses, slowing the economy and potentially tipping it into contraction. Debate is focused on whether the Fed's fight against inflation is worth the risk of a downturn.