Economics

Australia's Slowing Economy Jars With RBA Lowe's Optimism

  • JPMorgan joins Westpac, Nomura in calling for two cuts in 2019
  • Aussie dollar slides to two-month low on rate-cut bets
Australia releases its fourth-quarter GDP figures. Bloomberg’s Kathleen Hays reports.(Source: Bloomberg)
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Australia’s slowing economy and rising calls for interest-rate cuts are starting to erode central bank chief Philip Lowe’s optimistic outlook.

The economy experienced its weakest six-month period since the global financial crisis, Wednesday’s gross domestic product data showed, as tumbling property prices and a credit squeeze dragged on construction and consumer spending. The Aussie dollar slid to a two-month lowBloomberg Terminal as swaps traders priced in a reduction in interest rates by October.