The RBA’s latest rate decision was anything but straightforward.

A 5–4 split has pushed the cash rate higher, at a time when households are already facing rising fuel costs and ongoing pressure on affordability.

So what problem is this rate rise actually trying to solve?

In this episode, we unpack the growing divide in economic thinking. Is inflation being driven by demand, or by global forces beyond our control? Are we moving too early, or doing what’s necessary to stay ahead?

We also explore what this means on the ground. Consumer confidence, spending behaviour, borrowing capacity, and the early signals in the labour market.

And with the RBA acknowledging that a recession is a risk, we ask the question many are starting to consider.

How far does this tightening cycle go, and what does the economy look like on the other side?