Skip to content
Business
Economics

Australia’s Solid Economic Momentum Suggests Faster Rate Hikes

  • Savings rate falls to 11.4%, lowest level since pandemic hit
  • Compensation of employees advanced 5.5% from a year earlier
Updated on

Australia’s economy expanded faster than forecast last quarter as households stepped up spending, bolstering the case for an outsized 40-basis-point interest rate hike next week.

Gross domestic product advanced 0.8% from the final three months of last year, taking the annual pace to 3.3%, government data showed Wednesday. That was higher than estimates and outpaced the pre-pandemic average of around 2%.