The number: Australia’s gross domestic product grew 0.2 per cent in the fourth quarter, missing the market consensus of a 0.3 per cent rise. Year-on-year, the economy expanded 1.5 per cent. Why it matters: The Reserve Bank of Australia is looking for further evidence of a slowdown in the economy to help bring inflation back to target. It has left the cash rate at 4.35 per cent at the last two policy meetings. It projects the economy to slow to 1.5 per cent in 2023, then 1.3 per cent by June this year before it starts picking up. What has changed: Traders have ramped up expectations of the first rate cut in the US by July with central banks including the RBA expected to follow suit in September. In Australia, brokers have noted that a fall in imports suggested weak consumption could impact today’s data.
What’s next: The RBA will meet over March 18-19 with its next policy decision and press conference on March 19.
