..yet the Aussie dollar reacted moving higher. GDP grew 0.2 per cent in Q1, below forecast
Cecile Lefort
The number: Australia’s gross domestic product grew at 0.2 per cent in the March quarter, following a 0.6 per cent expansion in the previous three-month period. That was below forecasts of a 0.4 per cent rise. Annual growth stalled at 1.3 per cent.
Why it matters: The Reserve Bank cut the cash rate last month for the second time this year as inflation finally returned to target amid heightened uncertainty from the White House’s trade policies and their impact on global growth.
What has changed: There are concerns that the United States’ aggressive tariffs could derail the global economy. The Australian economy is running at a pedestrian pace compared to its historical trend.
What next: US employment data will be released overnight and the Bank of Canada is expected to cut its benchmark by a quarter of one percentage point to 2.5 per cent.
