Australian GDP outpaces forecasts, boosting odds of a September rate hike
Australia's economy expanded by 0.4% in the June quarter, slightly above expectations, prompting markets to raise the probability of a Reserve Bank rate increase this month.
The latest national accounts show a 0.4% quarterly gain and a 2.1% annual rise, both edging past the median forecasts of 0.3% and 1.8% respectively. These figures were released by the Australian Bureau of Statistics. In response, futures traders have lifted the perceived chance of a September interest-rate move by the Reserve Bank of Australia to roughly 60%.
Why it matters
Higher-than-expected growth could push the Reserve Bank of Australia to raise rates, affecting loans and the broader economy.
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GDPquarterly growthannual growthinterest rateReserve Bank of Australiamarket oddseconomic forecast
