Government data showed GDP grew 0.3% q/q in Q1, below expectations and roughly
one-third the pace in Q4 2025; annual growth slowed to 2.5%, also missing
forecasts. The Australian Bureau of Statistics' national accounts head said
March-quarter growth eased, with household and public spending subdued and March
interest-rate rises and sharply higher fuel costs likely prompting more cautious
consumer behavior. Swap traders now price a slightly better-than-50% chance of
an RBA hike at the August meeting and continue to expect the Reserve Bank of
Australia could raise rates once more before year-end.
