Australia's economy expanded 0.4 per cent, sparking a 70 per cent chance of a September rate hike
The Australian Bureau of Statistics reported quarterly growth of 0.4 per cent and annual growth of 2.1 per cent, figures slightly above forecasts that have traders betting on an immediate interest rate increase.
Australia's economy expanded by 0.4 per cent in the June quarter, exceeding most economist predictions for a 0.3 per cent rise. Annual growth reached 2.1 per cent to June 30, also beating expectations of 1.8 per cent, according to data from the Australian Bureau of Statistics. Treasurer Jim Chalmers stated the results demonstrated strong economic performance comparable to major advanced economies despite global challenges. Conversely, IFM Investors chief economist Alex Joiner warned that underlying factors like poor productivity and flat per capita GDP suggest the growth is unsustainable. He argued the Reserve Bank of Australia should raise rates in September or November to address inflation risks. Consequently, traders increased their probability of a policy shift by the central bank from earlier levels to approximately 70 per cent for a September adjustment.
