Australia Expands at Slower Pace

Australia’s economic growth slowed last quarter as the currency strengthened and commodity prices weakened, underscoring the central bank’s bias to keep interest rates at a record low to boost domestic demand.

Second-quarter gross domestic product advanced 0.5 percent from the previous three months, when it rose 1.1 percent, a Bureau of Statistics report released in Sydney today showed. The result compared with a median forecast for a 0.4 percent gain from a survey of 27 economists by Bloomberg News.

The data underscore a division in policy outlook between the Federal Reserve, which markets bet will tighten next year, and the Reserve Bank of Australia’s flagged period of stability for its record-low benchmark. Australia is losing its developed-world-beating status as the mining investment boom that powered it through the global financial crisis wanes, while the associated currency strength fails to dissipate.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.