Australian Economy Stalls Amid Weak Consumption

Australia's economy grew at a slower pace in the June quarter, expanding by just 0.4% compared to the previous three months. This brings annual growth to 2.1%, down from 2.5% in the March quarter.

The Reserve Bank of Australia (RBA) is keeping a close eye on this data as it weighs its next interest rate move. While some economists believe rates could remain higher for longer, others think the RBA may stay on hold until September.

BNY senior APAC market strategist Wee Khoon Chong said that despite slower headline growth, underlying activity remains resilient. However, sticky inflation and continued wage pressures have kept the prospect of further policy tightening alive.