Economy hits its speed limit, raising RBA rate rise chance | The Business | ABC NEWS

By ABC News (Australia)

Community Score: 50% | 1.4K views | 1mo

0 community ratings: null thumbs up, null thumbs down

Australia's economy grew 0.4 per cent in the June quarter, slightly beating most economist forecasts and further raising the prospect of an interest rate hike as soon as this month. The economy grew 2.1 per cent over the past year to June 30, seasonally adjusted, according to the latest Australian Bureau of Statistics National Accounts. Treasurer Jim Chalmers says it's proof the Australian economy is as strong or stronger than every other major advanced economy but he did concede it is facing a number of challenges from flat productivity to high inflation and global volatility. Household consumption grew 0.4 per cent in the quarter and contributed about half of Australia's overall economic growth during the three months to June 30. Discretionary spending was the driver, but the ABS said nearly half of the 1.4 per cent jump in the category was due to a surge in vehicle purchases. Traders have subsequently pushed up the odds of a September interest rate hike by the Reserve Bank of Aust

Tags: Australia, abc, abc news, news, business news, finance news, economic news, economy, finance, the business, abc news australia, the business abc, GDP, interest rate, rate hike, inflation, ABS, australian bureau of statistics, treasurer, Jim Chalmers