Australia’s economy seen growing slower on rapid rates rises – Bloomberg survey

According to a Bloomberg survey of 45 analysts, the Australian GDP rate is seen growing at a slower pace than previously expected, as the aggressive interest rate hikes to tackle inflation is likely to have a first-order impact on the economy.

Key takeaways

“The A$2.2 trillion (S$2.1 trillion) economy will grow an annual 3.3 percent in the fourth quarter and 3.1 percent in the first 3 months of 2023, down from previous forecasts of 3.8 percent and 3.6 percent, respectively.”

“Expect the cash rate to finish the year at an average 2.45 percent, from 1.75 percent previously, before climbing to 2.6 percent in the first quarter and then holding there.”

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