Australia posts second-quarter growth of 2.1%, beating expectations

Australia's economic growth beat expectations in the second quarter, expanding at 2.1% year on year, data released Wednesday showed. Economists polled by Reuters had estimated growth at 1.8%, while the economy had expanded by 2.5% in the prior quarter. Stronger-than-expected GDP print will allow the Reserve Bank of Australia room to go ahead with its policy tightening as it seeks to curb inflation. At its last meeting, some RBA board members had considered the case for additional tightening, saying that inflation in the country was still too high. Australia's July inflation reading surpassed expectations, coming in at 3.5% compared to the 3.3% forecast. The RBA forecast that inflation would decline only gradually, returning to around the midpoint of its 2%-3% target range by late 2027. This is breaking news, please check back for updates.