Surprising GDP growth holds ‘double-edged sword’ over Aussies fearing another rate hike
Australia's GDP grew by 0.4 percent in the June quarter, exceeding expectations despite a cooling economy. Experts warn this resilience may prompt the Reserve Bank of Australia to implement further interest rate hikes to combat persistent inflation.
Why it matters
Economic growth data directly influences central bank policy, impacting mortgage rates and the cost of living for Australian households.
- 3.18am . First published at 2.15am
shares Share article The Australian economy grew by 0.4 per cent in the June quarter, but experts warn the “double-edged sword” in the stronger-than-expected results makes another rate hike this year all the more likely.
The Australian Bureau of Statistics on Wednesday found gross domestic product (GDP) rose by 0.4 per cent in the last three months and 2.1 per cent in the year to June as cautious households spent less on fuel and travel due to the war in the Middle East.
The Australian economy grew by 0.4 per cent in the June quarter, but the strong result has increased the chance of a rate hike. Photograph by Chris Hopkins
That was slightly lower than the 2.5 per cent in the 12 months to March and 2.6 per cent in the 12 months to December.
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