Australia’s GDP beats expectations, signaling room for another RBA tighten

Australia posted a 2.1% year‑on‑year GDP rise in Q2 and 0.4% quarter‑on‑quarter, topping forecasts of 1.8% and 0.3%. Growth was driven by private demand and mining exports, while households remained cautious. The stronger print gives the Reserve Bank of Australia more room to tighten as July inflation came in at 3.5%, with officials expecting inflation to gradually ease toward the 2–3% target by late 2027.