Australia's GDP Beats Forecast, Fuels RBA Rate Hike Speculation

Australia's economy grew at a slightly faster pace in Q2 than expected, according to data released by the Australian Bureau of Statistics. The country's GDP rose 0.4% in the June quarter, exceeding economists' forecast of a 0.3% increase and accelerating from a revised 0.3% growth in the March quarter.

This result comes as the Reserve Bank of Australia continues to monitor inflation and economic capacity. Despite hiking interest rates three times earlier this year, the RBA may still need to take further action to tame high inflation.

The data suggests that growth remains resilient, potentially complicating the RBA's efforts to balance persistent inflation with weakening domestic demand. Household consumption increased 0.4% in the quarter, but private business investment fell after a substantial rise in the previous quarter.