Lambie predicts tough times ahead

Jacqui Lambie has said the country is undoubtedly bound for recession.

Her comments came ahead of a revised economic forecast to be delivered by Treasurer Jim Chalmers on Thursday, which was expected to indicate that more financial pain is coming. That pain will probably be compounded next month when the Reserve Bank delivers an expected further hike in interest rates.

On Wednesday, the Australia Institute’s chief economist warned the Reserve Bank against hiking rates to “keep up” with inflation or risk a recession.

Senator Lambie (pictured) also issued a warning to the central bank on Thursday morning, as she made a bleak prediction.

“I just say to the Reserve Bank, there are many people out there at the moment that don’t have savings in their bank accounts, so it’s making it really, really difficult,” she said.

“The cost of living has gone through the roof and a roast lamb is now a luxury.

“I hate to say this, and I don’t want to say it, but let’s be honest here, we’re heading into a recession. It’s just what that recession is going to look like, and how bad it is … It’s really quite sad out there.”

Ahead of his ministerial statement on Thursday, Dr Chalmers attempted to dial down fears of a recession.

“(A recession) is not our expectation,” he told ABC Radio.

“It’s not one of the possibil ities that we’ve been dealing with. I think Australians should brace for a difficult period, but we expect the economy to continue to grow, but so will our economic challenges. Things will be difficult. Inflation will get worse before it gets better, but it will get better.”

Senator Lambie said the Treasurer and the Albanese government needed to urgently unveil a cost-of-living package.

“He’s going to have to … give (people) some room to move, some breathing space,” she said.

“Something will need to be done … People are doing it really tough out there.”