Australia’s economy unexpectedly slowed for a second straight quarter, sending the currency to a four-year low and renewing pressure for interest-rate cuts.
Gross domestic product advanced 0.3 percent from the previous three months, when it rose 0.5 percent, a Bureau of Statistics report released in Sydney today showed. The result was less than the weakest estimate of 29 economists, who had a median of 0.7 percent.
“It must bring the potential of a rate cut back into the thinking” of the Reserve Bank of Australia, said Matthew Peter, the Brisbane-based chief economist at QIC Ltd., which has more than A$70 billion ($59 billion) under management. “The fall in the exchange rate will help the non-mining sectors of the economy but we’re going to have to wait for that to filter through.”