RBA Eyes Economic Growth Data as Rate Hike Looms

The Reserve Bank of Australia (RBA) will focus on economic growth data next as it considers whether to implement another rate hike. This comes after hotter-than-expected inflation data set it on course for another increase.

According to Westpac senior economist Pat Bustamante, the economy has been showing signs of resilience despite higher interest rates and fuel prices. Investment in data centres, renewable energy, and home building have contributed to this stability.

Bustamante expects GDP growth to slow to 0.2 per cent for the June quarter, but notes that the annual rate is still 2.5 per cent. This may not be enough to convince the RBA that spare capacity is opening up in the economy to control inflation.