There are growing fears Australia will follow New Zealand into a recession next.

Commonwealth Bank and AMP suggest there's a 50-50 chance the Australian economy enters recession within the coming months.

HSBC Chief Economist Paul Bloxham says it's getting harder for the RBA to bring inflation down without a recession- but there's a narrow path the bank could tread.

"If it were to lift too much more and be a bit above 4 percent, then that's starting to get to the rate that's not consistent with the inflation target. And then you might have to have a bigger rise in the unemployment rate."

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