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.”
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.