TSX higher on employment data
Investing.com -- Reserve Bank of Australia Governor Michele Bullock indicated Wednesday that second quarter economic growth exceeded expectations, potentially limiting future interest rate reductions if consumer spending remains strong.
Speaking after a speech in Perth, Bullock noted positive signs in the economy as private sector growth began to expand with increased household spending.
"What it means for the future of interest rates, I don’t know at this stage," Bullock said. "If anything, probably it is a little stronger than we thought it would be, so that’s good. But it does mean it’s possible that if it keeps going, then there may not be many interest rate declines to come, but it all depends."
The central bank chief’s comments suggest that continued economic strength could influence the RBA’s monetary policy decisions in the coming months, with fewer rate cuts possible if consumer spending maintains its current trajectory.
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