Australian Economy Accelerates, Fueling Rate Hike Speculation

Australia's economic growth accelerated unexpectedly in the second quarter, beating forecasts and adding to the case for another interest rate hike by the Reserve Bank of Australia (RBA).

The country's Gross Domestic Product (GDP) grew by 0.4% in the three months through June, surpassing a predicted 0.3% increase, according to data from the Australian Bureau of Statistics.

This growth rate translates to an annual expansion of 2.1%, exceeding the median estimate of 1.8%. As inflation remains strong, some experts believe the RBA may need to raise interest rates again to achieve its objectives.

Alex Joiner, chief economist at IFM Investors, warned that the economy risks not slowing down quickly enough for the RBA to meet its inflation goals.