Australia's gross domestic product (GDP) increased by 0.2% in Q3, down from 0.4% in Q2 and lower than the market consensus of 0.4%.
On a year-on-year basis, the economy expanded by 2.1%, which was consistent with the previous quarter and exceeded the forecast of 1.8%.
Why it matters: The central bank is searching for indications of an economic slowdown to assist in achieving its goal of restoring inflation to target. This week, it maintained the cash rate at 4.35%.
What has changed: Traders globally have been ramping up rate cuts in the US and elsewhere on expectations that the central banks have done enough to tame inflation. In Australia, recent data shows a softening in employment and inflation figures.
What’s next: The RBA reconvenes in February after an extended summer break, so January’s quarterly inflation report will be key.