Australia’s annual GDP growth slows to 2.1% after three rate hikes
AI Market Summary
Australia's FY GDP growth slowed to 2.1% but beat expectations, reinforcing the view that demand remains resilient despite three rate hikes. With inflation still above target and productivity contracting, markets are increasingly pricing another RBA hike soon, tightening domestic financial conditions. The mix of firmer growth and persistent supply-side constraints is most relevant for AUD via rate-differential and policy-expectation channels.
Impact level
● Medium
Affected assets
NCFXAUD2USD/USDT+0.11%
AI Insight · NCFXAUD2USD/USDTAI Insight
● Neutral
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Australia’s annual GDP growth eased to 2.1% in the year to June 30, beating market expectations of 1.8% and the Reserve Bank’s August forecast of 1.9%. Productivity fell 0.2% in the last financial year, with output per hour worked shrinking. Treasurer Jim Chalmers said Australia is matching US growth despite a higher 4.35% cash rate versus the US 3.75% key rate. Markets are pricing in the risk of another RBA rate increase within less than four weeks.
