Overview

• ABS data show GDP rose 0.6% in the June quarter and 1.8% over the year, with household consumption contributing about two‑thirds of the quarterly growth.
• Governor Michele Bullock said continued strength in spending could mean there are not many interest rate declines left to come, stressing the outlook remains uncertain.
• Traders trimmed the total easing priced into markets after the GDP print, with expectations shifting toward a smaller overall cutting cycle even as a November reduction remains in play.
• Fresh data point to firmer demand, including a 0.9% jump in household consumption in the June quarter and a lift in July household expenditure, led by discretionary outlays.
• The RBA lowered the cash rate to 3.60% in August and cut its medium‑term productivity assumption to 0.7%, and economists are divided on whether the stronger growth will alter the gradual easing path.