After hiking for the fourth consecutive month, the RBA’s tone has shifted to suggest a pause at the September meeting is possible, reflecting in part the troubling signals emanating from markets as the US teeters on the brink of recession and conditions continue to cool across the globe. 

As lead indicators continue to flash red – consumer confidence remains at alarming levels and housing is rolling over – can Australia’s central bank successfully thread the needle and avoid an outright stalling of the Australian economy?