Australia's third-quarter GDP growth falls short of expectations at 0.3%.
- In the third quarter, Australia's economy experienced slower growth than anticipated due to high borrowing costs and persistent inflation, which negatively impacted the already sluggish economy.
- According to the Australian Bureau of Statistics, the real gross domestic product increased by 0.3% in the three months ending September, compared to the 1% growth recorded in the previous quarter.
- Australia's economy grew 0.8% annually, falling short of the 1.1% growth predicted by Reuters, after a 1% increase in the 12 months ending the previous quarter.
In the third quarter, Australia's economy experienced slower growth than anticipated due to high borrowing costs and persistent inflation, which negatively impacted the already sluggish economy.
The Australian Bureau of Statistics reported on Wednesday that the real gross domestic product increased by 0.3% in the three months ending September, which was lower than the 1% growth recorded in the previous quarter and also fell short of the Reuters forecast of a 0.4% rise.
Australia's economy grew 0.8% annually, falling short of the 1.1% growth predicted by Reuters, after a 1% increase in the 12 months ending the previous quarter.
Since May 2022, the Reserve Bank of Australia has raised interest rates by 425 basis points, resulting in a slowing trend in the country's economy for the past two years.
Since late last year, the RBA has maintained its benchmark interest rates at a 13-year peak of 4.35%.
The government's energy bill rebates helped slow the country's headline consumer price inflation to 2.8% in the third quarter.
Despite being at a two-year low of 3.5%, the core inflation, excluding electricity and automotive fuel prices, remains above the central bank's target range of 2% to 3%.
Last week, Michele Bullock, the RBA governor, stated that core inflation is "too high" to contemplate interest rate cuts in the near future.
She confirmed that monetary policy will remain tight until the bank is certain that the underlying inflation is heading towards the midpoint of the target range, which is 2.5%.
The RBA's next policy meeting is scheduled for Dec. 10, with the officials predicted to maintain the cash rate.
Asia Economy
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