The Reserve Bank will hand down their decision on whether interest rates will rise at 2.30pm today.
Most economists have tipped the central bank to lift the cash rate by 25 basis points, from 4.1 per cent to 4.35 per cent.
While all signs lead to a rate rise, Bouris warned 2GB’s Ben Fordham that it wasn’t the question of “will they? but should they?”.
“If they do, this will be the interest rate that stops the nation,” the Yellow Brick Road founder told Fordham.
“Because I actually think if they actually do this, we might find ourselves falling into a recession,” Bouris said.
“I’m one of the few people that’s saying the Reserve Bank does not need to put the rates up.
“We seem to be willing ourselves to put the rates up, I don’t what it is it’s like a hysteria.
“If you look at the data, the data indicates that there will not be an interest rate rise today, on Melbourne Cup Day.”
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Bouris believed Governor Bullock should hold off on the rate rise, as businesses increase borrowing in the lead-up to the busy Christmas period.
“All these business owners have mortgages, most of them have lines of credit to run their business, overdrafts,” he said.
“Right now for example they’re all stocking up for Christmas, so they all go out and borrow money and they’re borrowing money at a higher interest rate that they’ve ever seen in the last 10 years.”
Bouris said that those particular business owners were struggling and would likely look to cut costs.
“They’re the sort of people that will say ‘you know what next year in 2024’ we can’t afford to have as many staff,” he said.
“When they start cutting back on the costs, one of the biggest ones is staff, they put people off, all of a sudden the unemployment number starts to increase.”
However, he dampened concerns when Fordham asked him whether he believed Australians would see a rate rise today.
“I don’t think they will. No,” he replied.
